Opinion | An attempt to kick-start the investment cycle
5 years, 3 months ago

Opinion | An attempt to kick-start the investment cycle

Live Mint  

It has been said that governments in India stare at the many problems and their possible solutions simultaneously. Companies in sectors such as consumer staples, consumer discretionary, healthcare services and financials are among the biggest beneficiaries as many companies in these sectors paid tax near the highest marginal tax rate. Sectors such as information technology and pharmaceuticals operate at tax rates nearer to the new peak marginal tax rate and as such there is no near-term earnings upgrades. However, even in these companies, when you think about cash flows accruing to these businesses in perpetuity, they do benefit because the likely prevailing assumption was that they would pay rates near to the marginal tax rate in the future. In capital-intensive commodity sectors, there are benefits due to increased cash flow to shareholders though earnings impact maybe more muted as many of these companies operate at lower effective tax rates.

India Benefits Growth Tax Companies Businesses Tax Rates Dtc Cash Flows Lower Rate  opinion  cycle  growth  sectors  kickstart  benefits  tax  attempt  lower  rate  investment  earnings  businesses  cash  companies

History of this topic

UK business groups says tax clarity needed at budget to support investment
3 months, 1 week ago

UK business groups says tax clarity needed at budget to support investment

Live Mint  

By David Milliken {{^adFree}} {{/adFree}} LONDON, Oct 8 - British finance minister Rachel Reeves needs to strike a positive tone at her first budget on Oct. 30 in order to give businesses the confidence to invest, the Confederation of British Industry said on Tuesday. After winning a large parliament majority on July 4, Reeves and Prime Minister Keir Starmer said …

Don’t increase corporation tax, three ex-chancellors tell Rishi Sunak
1 year, 10 months ago

Don’t increase corporation tax, three ex-chancellors tell Rishi Sunak

The Telegraph  

Mr Kwarteng, sacked as chancellor by Ms Truss shortly before she resigned as prime minister, said the increase in corporation tax “doesn’t help our competitiveness”, adding: “We have got to look at ways to improve our attractiveness to foreign investors.” Meanwhile the Federation of Small Businesses said the policy would be disastrous for the UK’s one million limited company directors. …

Federal budget leaves business owners smiling as instant investment tax breaks extended
3 years, 8 months ago

Federal budget leaves business owners smiling as instant investment tax breaks extended

ABC  

Businesses have welcomed a budget extension to instant investment write-offs, while medical and biotech companies are set to benefit from a lower tax rate on the fruits of their research. Key points: The instant asset write-off allows businesses to claim deductions upfront, rather than through depreciation Businesses have already been taking advantage of the scheme to scale up and meet …

Labour to oppose any Budget hike in corporation tax in extraordinary political reversal
3 years, 10 months ago

Labour to oppose any Budget hike in corporation tax in extraordinary political reversal

The Independent  

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UK Sign up to our Brexit email for the latest insight Sign up to our Brexit email for the latest insight SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy …

Tax increase for corporations looks more likely as US election nears
4 years, 2 months ago

Tax increase for corporations looks more likely as US election nears

Live Mint  

On paper, the 21% U.S. corporate tax rate was a permanent cornerstone of the 2017 tax law, a boon to business without the expiration date attached to other provisions. As the election nears, companies are closely examining Mr. Biden’s plans and modeling higher tax rates, said Rohit Kumar of accounting firm PwC LLP. Higher corporate taxes would make it harder …

Budget 2020 Expectations: Govt Likely To Reduce Personal Income Tax Rates To Spur Economic Growth
5 years ago

Budget 2020 Expectations: Govt Likely To Reduce Personal Income Tax Rates To Spur Economic Growth

ABP News  

Union Minister of Finance and Corporate Affairs Smt. For more details:https://t.co/v9N2RY7EBW pic.twitter.com/FXymoEhbrg — Ministry of Finance December 17, 2019 As the Modi government 2.0 is months away to present its Budget for 2020-21 fiscal likely on February 1, it is been expected that the Finance Ministry might trim personal income tax rates and reduce the tax levied on long term …

In a first, govt seeks suggestions on income tax rates, other duties
5 years, 2 months ago

In a first, govt seeks suggestions on income tax rates, other duties

Live Mint  

In perhaps the first instance, the finance ministry has kicked off the exercise to formulate the next budget by seeking suggestions on changes in direct and indirect taxes from industry and trade associations. While the ministry holds pre-budget consultations with representatives of different sectors and stakeholders, the Department of Revenue in the finance ministry perhaps for the first time put …

Budget 2020: Finance Ministry seeks suggestions for rationalising income tax, other duties
5 years, 2 months ago

Budget 2020: Finance Ministry seeks suggestions for rationalising income tax, other duties

India TV News  

In perhaps the first instance, the finance ministry has kicked off the exercise to formulate the next budget by seeking suggestions on changes in direct and indirect taxes from industry and trade associations. While the ministry holds pre-budget consultations with representatives of different sectors and stakeholders, the Department of Revenue in the finance ministry perhaps for the first time put …

Number of income tax payers jumps 13.8% to 84.5 million
5 years, 3 months ago

Number of income tax payers jumps 13.8% to 84.5 million

Live Mint  

The number of income tax payers rose to 84.5 million in the 2018-19 assessment year, a jump of 13.8% from the previous year in line with double-digit growth in tax receipts and the number of returns filed, official data showed on Friday. Successive rounds of GST rate cuts as well as the improvement in income tax compliance have led to …

‘Corporate tax cut is the single biggest reform in the last two decades’
5 years, 3 months ago

‘Corporate tax cut is the single biggest reform in the last two decades’

Live Mint  

B.K Goenka occupies a hot seat. Edited excerpts from an interview: The recent cut in corporate tax rate and other economic sops have brought cheer to the industry. The corporate tax cut is the single biggest reform in the last two decades and is no small achievement. One should understand that when the effective rate of corporate tax is slashed …

Lower corporate tax may not be enough to jump-start economy
5 years, 3 months ago

Lower corporate tax may not be enough to jump-start economy

Live Mint  

The slowing of economic growth to a six-year low of 5% in the June quarter is partly because Indians have either stopped buying or postponed their purchases of goods. That said, the government cannot rely on a tax cut alone, and needs a monetary boost through further policy rate cuts and, perhaps, even increase its spending. “Recall that the fiscal …

Industry, stock market experts term Sitharaman's corporate tax cut 'revolutionary', say will make Indian firms globally competitive
5 years, 3 months ago

Industry, stock market experts term Sitharaman's corporate tax cut 'revolutionary', say will make Indian firms globally competitive

Firstpost  

India has finally become tax competitive. Welcoming the move, Frank D’Souza Partner and Leader Corporate and International Tax, PwC India said, “the reduction in the corporate tax rate is a welcome move and makes India attractive for new investments. G Radhakrishna, Chairman and Managing Director of RKEC Projects The announcement of reduction in corporate tax rate is really a big …

To promote growth, just cut tax rates: Here is the likely impact of tax rates for corporates being slashed by the Modi govt
5 years, 3 months ago

To promote growth, just cut tax rates: Here is the likely impact of tax rates for corporates being slashed by the Modi govt

Op India  

Concerns on taxation front have persisted for a major part of the last two decades. In a joint article with Dr Surjit Bhalla for the Indian Express, we arrived at a figure of 22 per cent as the optimal level of the corporate tax rate. Recently, the Hon’ble minister lowered the tax rate to 22 per cent without the exemptions …

Reduction in corporation tax rate welcome, doubtful whether investment will revive: Jairam Ramesh
5 years, 3 months ago

Reduction in corporation tax rate welcome, doubtful whether investment will revive: Jairam Ramesh

India TV News  

Congress leader Jairam Ramesh on Friday welcomed the reduction in corporate tax rate but expressed doubts on whether the step will revive investment. The government's move, he said, does nothing to dispel the fear that pervades India Inc. "A headline-itis afflicted, panic-stricken Modi Sarkar has cut corporate tax rates less than 3 months after a Budget and 4 months before …

Budget 2019: FICCI suggests 25% cut in corporate tax across board to spur economic growth
6 years ago

Budget 2019: FICCI suggests 25% cut in corporate tax across board to spur economic growth

Firstpost  

FICCI has also suggested revision in the tax slabs for the individual taxpayers with the top 30 percent rate to be applied beyond Rs 20 lakh annual income. New Delhi: Industry chamber FICCI on Sunday recommended the government to cut corporate tax rate across the board to 25 percent irrespective of turnover in the forthcoming budget to spur economic growth …

Corporate Tax to be Cut Only When Exemptions End: Arun Jaitley
6 years, 11 months ago

Corporate Tax to be Cut Only When Exemptions End: Arun Jaitley

India TV News  

Finance Minister Arun Jaitley has hinted at the possibility of further tax cuts for corporate and indirect taxes in the future, but only after all existing exemptions are phased out. Jaitley made this announcement during a post-budget interaction with industry chamber FICCI, stating that the corporate tax rate can only be brought down to 25 per cent after all exemptions …

Discover Related