CITI hails corporate tax cuts, says it will provide major boost to economy

New Delhi: Finance & Corporate Affairs Minister, Nirmala Sitharaman, Friday made a major announcement by slashing the Corporate Tax on existing companies to 22 per cent and new companies to 15 per cent, during a GST council meeting held in Goa. T Rajkumar, Chairman, CITI, applauded the measures as a welcome step in the right direction at an opportune time. These steps will help boost the investment and create employment opportunities in the Indian economy.

Chairman also stated that to stabilise the flow of funds into the capital market, the enhanced surcharge shall not apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax, in the hands of an individual, HUF, AOP, BOI and AJP. Foreign Portfolio Investors (FPIs) have also been excluded from the enhanced surcharge on the capital gains arising on sale of any security including derivatives.

Rajkumar thanked the Finance Minister and stated that the above decision now puts the India's Corporate Tax at par with global rates. He further stated that these steps would give a big push to 'Make In India' initiative and attract fresh investment in the manufacturing sector thereby generating huge employment opportunities in the manufacturing sector.