{"id":667,"date":"2019-09-22T22:52:16","date_gmt":"2019-09-22T22:52:16","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/09\/22\/india-inc-expects-corporate-tax-cut-to-create-positive-impact-on-economy-speedier-turnaround\/"},"modified":"2019-09-22T22:52:16","modified_gmt":"2019-09-22T22:52:16","slug":"india-inc-expects-corporate-tax-cut-to-create-positive-impact-on-economy-speedier-turnaround","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/09\/22\/india-inc-expects-corporate-tax-cut-to-create-positive-impact-on-economy-speedier-turnaround\/","title":{"rendered":"India Inc expects corporate tax cut to create positive impact on economy, speedier turnaround"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1714004\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/09\/cats-731.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/09\/cats-731.jpg 660w, https:\/\/images.financialexpress.com\/2019\/09\/cats-731-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/09\/cats-731-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/09\/cats-731-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"size-full wp-image-1714004\" src=\"https:\/\/images.financialexpress.com\/2019\/09\/cats-731.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/09\/cats-731.jpg 660w, https:\/\/images.financialexpress.com\/2019\/09\/cats-731-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/09\/cats-731-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/09\/cats-731-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">Niti Aayog CEO Amitabh Kant said the government has brought corporate tax on par with the East Asian neighbours and on par with the best tax regimes across the world.<\/span><\/figure>\n<\/div>\n<p>Industry leaders from diverse sectors such as manufacturing and services expect the reduction in corporate tax rates to create a positive impact on the economy, leading to a speedier turnaround. Last Friday, the government announced a massive 10-12 percentage points reduction in taxes for corporates, bringing down the effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies. The new tax rate will be applicable from April 1, involving a revenue loss of Rs 1.45 lakh crore this fiscal. Welcoming the step, Godrej Group Chairman Adi Godrej said, \u201cThis great announcement will totally change the economic progress. I would say the only other announcement which is of greater importance was in July 1991. This tax cuts will have tremendous positive effect. We will soon see a turnaround.\u201d<\/p>\n<p>Addressing the India Today Conclave here over the weekend, he said there is now a need to focus on improving demand. R C Bhargava, chairman of <a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/auto\/new-cars\/marutisuzuki\/\" rel=\"noopener noreferrer\">Maruti Suzuki<\/a>, said manufacturing\u2019s growth rate or share in GDP is nowhere near the required level. Manufacturing is barely limping at around 5 per cent and we need to lift it to 15 per cent, he said, adding that the tax cuts will be a big step in that direction. The need is now to address the demand side issues, Bhargava also opined. Niranjan Hiranandani of realty major Hiranandani Group said the tax cuts address only the supply-side economics but we also need \u201cto address the demand side.\u201d Piramal Group\u2019s Ajay Piramal said the tax cut sends out a clear message that the government is listening to the issues. It is a brave step but more needs to be done to spur demand, he added. Niti Aayog CEO Amitabh Kant said the government has brought corporate tax on par with the East Asian neighbours and on par with the best tax regimes across the world. \u201cThe government has put liquidity into the bottom line of the companies.<\/p>\n<p>Roughly, close to Rs 75,000 to Rs 80,000 crore will be flowing because of the tax cuts into the bottom line of companies,\u201d he said. The onus is on these companies now as the government has done its bit, Kant said, adding that it is time for all the Marutis, Mahindras and Godrejs to act by cutting their prices and offering more sops to consumers. However, Godrej added that the tax cuts will not lead to an equal reduction in prices. \u201cThere could be more incentives that could be given to the consumers but this won\u2019t lead to a major slashing of retail prices of products,\u201d Godrej said. The corporate leaders also took on the taxmen for their frequent raids\/searches. While Godrej said it is wrong for the tax department to set a target for collection, Piramal vented his ire on the frequent searches and raids conducted by the department. \u201cWith so much of data available, do you really need to go to somebody\u2019s house and search them and humiliate them,\u201d Piramal asked.<\/p>\n<p><iframe class=\"lazy lazy-hidden\" data-lazy-type=\"iframe\" data-src=\"https:\/\/www.youtube.com\/embed\/yfQVFKPR5-M\" width=\"100%\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><noscript><iframe src=\"https:\/\/www.youtube.com\/embed\/yfQVFKPR5-M\" width=\"100%\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/noscript><\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n<div class=\"jobbi-after-content-jh-placement jobbi-entity-placement\" id=\"jobbi-2429515416\"><div id=\"jobbi-3888396667\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5862940809620110\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-5862940809620110\" \ndata-ad-slot=\"\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>[ad_1] Niti Aayog CEO Amitabh Kant said the government has brought corporate tax on par with the East Asian neighbours and on par with the best tax regimes across the world. Industry leaders from diverse sectors such as manufacturing and services expect the reduction in corporate tax rates to create a positive impact on the [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=667"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/668"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}