Tax breaks necessary but India needs more reforms, says CEA
5 years, 1 month ago

Tax breaks necessary but India needs more reforms, says CEA

Live Mint  

Corporate tax rate cuts are necessary but not sufficient to stimulate investments, for which the country needs more reforms, chief economic advisor Krishnamurthy Subramanian said on Tuesday. “Tax rate cuts are necessary, but are not necessarily sufficient conditions for attracting investments because investors look at after-tax returns,” Subramanian said while arguing for more investments. The government in September announced a lower 22% corporate tax rate for domestic companies that do not avail of any tax breaks and a 15% rate for new manufacturing companies. “One clear policy option to hasten the recovery process could be a direct and strong demand-push injected into the economy through the augmentation of government’s expenditure,” said D.K.

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History of this topic

Competitiveness, not protectionism, is the key to our future: Uday Kotak
1 week, 2 days ago

Competitiveness, not protectionism, is the key to our future: Uday Kotak

Live Mint  

Kotak, who is now 65, stepped down as the managing director of Kotak Mahindra Bank a year ago. In a career spanning nearly four decades, Kotak managed to build a financial conglomerate with total assets worth ₹6.2 trillion, spanning across banking, mutual funds, insurance, stock broking, car finance, investment banking, private equity, and alternative assets. While he avoids all questions …

Why have private investments dropped? | Explained
8 months, 3 weeks ago

Why have private investments dropped? | Explained

The Hindu  

April 18, 2024 10:46 pm | Updated April 19, 2024 11:51 am IST The story so far: The failure of private investment, as measured by private Gross Fixed Capital Formation as a percentage of gross domestic product at current prices, to pick up pace has been one of the major issues plaguing the Indian economy. It, however, began to drop …

Has India’s corporation tax gamble paid off yet?
1 year, 9 months ago

Has India’s corporation tax gamble paid off yet?

Live Mint  

From being raised to 45% in India’s historic budget of 1991, to now just around half of that, corporate tax rates in India have come a long way and are now indeed more competitive globally. The effective tax rate among Indian companies has now fallen below even the statutory concessional rate, a Mint analysis shows. 26%: Corporate tax's share in …

Modi administration cut corporate taxes, it’s industry’s turn to invest: Anurag Thakur
4 years, 6 months ago

Modi administration cut corporate taxes, it’s industry’s turn to invest: Anurag Thakur

Live Mint  

Minister of state for finance Anurag Thakur on Friday urged business leaders to start investing in the economy taking advantage of the lower corporate tax rate and other measures taken to make life easier for businesses. Thakur said that Indian industry used to talk about lower corporate tax rates prevalent in certain countries. Last September, finance minister Nirmala Sitharaman announced …

Corporate tax cut to mostly benefit less than 1% of companies: Economic Survey
4 years, 11 months ago

Corporate tax cut to mostly benefit less than 1% of companies: Economic Survey

Live Mint  

The steep cut in corporate tax rate will benefit large companies the most as smaller ones were already paying lower rates, the Economic Survey 2019-20 said on Friday. The pre-Budget Survey, tabled in Parliament, said most of the companies have a gross turnover of below ₹400 crore and are already taxed at the base corporate tax rate of 25 per …

Budget 2020: Income tax rate cuts high on the wish list
4 years, 11 months ago

Budget 2020: Income tax rate cuts high on the wish list

Live Mint  

With Budget 2020 announcements around the corner, the euphoria on Budget expectations are very high. This has put India on the trajectory of significantly high personal income tax rates globally and has come at a time when countries such as the US have reduced personal tax rates. The cuts in individual tax rates will enhance the disposable income and in …

Union Budget 2020: Key expectations from Modi govt after year of turbulence
5 years ago

Union Budget 2020: Key expectations from Modi govt after year of turbulence

India Today  

Finance Minister Nirmala Sitharaman will present the Union Budget 2020 on February 1, at a time when India's economy is going through one of the worst periods of slowdown in decades. That said, here are some expectations from the upcoming budget: Personal income tax cut A cut in personal income tax rates is one of the most popular demands floated …

Ahead of Budget 2020, Narendra Modi, Amit Shah meet economists, experts at NITI Aayog; discuss steps to revive growth
5 years ago

Ahead of Budget 2020, Narendra Modi, Amit Shah meet economists, experts at NITI Aayog; discuss steps to revive growth

Firstpost  

The meeting assumes importance as the government is in the process of formulating Budget proposals for 2020-21 New Delhi: Prime Minister Narendra Modi is meeting economists and experts at the NITI Aayog to discuss the state of economy and steps to be taken to revive growth which is estimated to drop to 5 percent during the current fiscal. pic.twitter.com/ES5BLAZkl7 — …

Rajya Sabha members uncertain over investments flow after corporate tax reduction
5 years, 1 month ago

Rajya Sabha members uncertain over investments flow after corporate tax reduction

India TV News  

Opposition members in the Rajya Sabha on Thursday expressed doubt over the increase in investment by companies after a reduction in corporate taxes during a debate on The Taxation Laws Bill. Initiating the debate on the bill, which was tabled to replace an ordinance that was used to slash corporate tax rates, Congress member Jairam Ramesh alleged that corporate tax …

Software, mining, books printing industry not qualify for 15% corporate tax cut: Nirmala Sitharman
5 years, 1 month ago

Software, mining, books printing industry not qualify for 15% corporate tax cut: Nirmala Sitharman

Live Mint  

Finance Minister Nirmala Sitharaman on Thursday said the lower 15% tax rate for new manufacturing companies will not apply to computer software development, mining and printing of books. She was replying to a debate in the Rajya Sabha on the Taxation Laws Bill, 2019 that replaces the Taxation Laws Ordinance, 2019, promulgated on September 20, 2019, to cut the base …

When the statistical system gives bad news, govt tries to discredit it: Pronab Sen
5 years, 1 month ago

When the statistical system gives bad news, govt tries to discredit it: Pronab Sen

Live Mint  

Pronab Sen, country director of the International Growth Centre, had a long and distinguished career in the government as the principal adviser in the Planning Commission, the first chief statistician of India as well as the chairman of the National Statistical Commission. In an interview, Sen spoke about the state of the economy, the challenge before the 15th Finance Commission …

Indian firms remain heavily taxed, how South Asia can contribute a third of global growth; all this and more on Moneycontrol Pro
5 years, 2 months ago

Indian firms remain heavily taxed, how South Asia can contribute a third of global growth; all this and more on Moneycontrol Pro

Firstpost  

Finally, some great news! Indian companies remain heavily taxed despite the corporate tax cut The corporate tax cut was hailed as a big game-changer for Indian companies. Though the Indian government has done the right thing in cutting corporate tax rates, the surcharges, cess, various taxes on dividend defeats the purpose. How South Asia can contribute a third of global …

Govt unlikely to go for personal income tax cut amid fiscal stress, lower tax realisation
5 years, 2 months ago

Govt unlikely to go for personal income tax cut amid fiscal stress, lower tax realisation

Firstpost  

New Delhi: The government is unlikely to moderate personal income tax rates for the rich due to fiscal stress on account of lower tax realisation amid a slowdown in the economy, sources said. The pressure is mounting on the government to cut personal income tax rates to boost demand, especially after the finance ministry reduced the corporate tax rate by …

Govt plans major tax alignments for equities; move aims to boost investor sentiment, bring in more forex
5 years, 2 months ago

Govt plans major tax alignments for equities; move aims to boost investor sentiment, bring in more forex

Firstpost  

The PMO is reviewing the current structure of LTCG tax, the STT and DDT in consultation with the Finance Ministry’s Revenue Department and NITI Aayog. PM will decide on timing of the announcement, reports @RoyLakshman attributing sources pic.twitter.com/LdzzEWCoQB — CNBC-TV18 October 29, 2019 The Prime Minister’s Office is reviewing the current structure of Long Term Capital Gains tax, the Securities …

IMF says corporate income tax cut will help revive investment in India
5 years, 2 months ago

IMF says corporate income tax cut will help revive investment in India

Live Mint  

The International Monetary Fund on Friday supported India's recent decision to reduce corporate income tax, saying it has a positive impact on investment. We support their corporate income tax cut because it has a positive impact on investment," Changyong Rhee, Director, Asia and Pacific Department, IMF, told reporters at a news conference here. "The monetary policy stimulus and the announced …

IMF says corporate income tax cut will help revive investment in India
5 years, 2 months ago

IMF says corporate income tax cut will help revive investment in India

India TV News  

The International Monetary Fund on Friday supported India's recent decision to reduce corporate income tax, saying it has a positive impact on investment. We support their corporate income tax cut because it has a positive impact on investment," Changyong Rhee, Director, Asia and Pacific Department, IMF, told reporters at a news conference here. "The monetary policy stimulus and the announced …

‘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 …

Corporate tax cut a signal to structural reforms, govt should focus on non-tax revenues to offset deficit: CEA
5 years, 3 months ago

Corporate tax cut a signal to structural reforms, govt should focus on non-tax revenues to offset deficit: CEA

Firstpost  

On 20 September, Finance Minister Nirmala Sitharaman had announced a reduction in the base corporate tax rate to 22% from 30% as part of stimulus measures to revive the slowing economic growth. Hyderabad: Describing the recent corporate tax cut as a signal to structural reforms, chief economic advisor KV Subramanian on Wednesday said the government needs to focus on non-tax …

All macros favouring India, profit-making companies should pass on tax cuts to consumers: Deepak Parekh
5 years, 3 months ago

All macros favouring India, profit-making companies should pass on tax cuts to consumers: Deepak Parekh

Firstpost  

Last Friday, the government slashed corporate tax by almost 10 percentage points as part of efforts to pull the economy out of a six-year low growth rate with a Rs 1.45-lakh crore tax break. New Delhi: Confident about the Indian growth story getting a big boost from the recent corporate tax rate cuts, eminent banker Deepak Parekh has said profit-making …

Six ways to slice the corporate tax cut
5 years, 3 months ago

Six ways to slice the corporate tax cut

Live Mint  

On 20 September, finance minister Nirmala Sitharaman announced that the government had decided to cut the corporate income tax rate to 22% for existing firms, and to 15% for new domestic firms in the manufacturing sector. Further, those who believe that the cut in corporate income tax is going to lead to price cuts haven’t really tried to answer whether …

Decision to cut corporate tax in India revolutionary: PM Modi at Global Business Forum
5 years, 3 months ago

Decision to cut corporate tax in India revolutionary: PM Modi at Global Business Forum

India Today  

Addressing top business leaders at the Bloomberg Global Business Forum, Prime Minister Narendra Modi on Wednesday said the government's decision to slash corporate tax is a revolutionary move. PM Modi was referring to the recent tax cut announcement by Finance Minister Nirmala Sitharaman-a move aimed at providing relief to domestic businesses amid a sharp demand slowdown. PM Modi also highlighted …

Corp tax cut may be the beginning of more reforms
5 years, 3 months ago

Corp tax cut may be the beginning of more reforms

Live Mint  

The government last week cut tax rates on corporate incomes. The recent corporate tax rate cuts don’t seem to be an application of supply-side economics, rather an attempt to reform the corporate tax structure. Expert panels had found the corporate income tax system to be in need of reform and advised rate cuts, simplification and removal of provisions that introduced …

Corporate tax cut makes India attractive destination for investment: Guv Das
5 years, 3 months ago

Corporate tax cut makes India attractive destination for investment: Guv Das

Live Mint  

Describing the government's move to slash corporate tax rate as a bold measure, RBI Governor Shaktikanta Das on Tuesday said it has made India a very attractive destination for foreign investment. In the biggest reduction in 28 years, the government on Friday cut corporate tax rate by almost 10 percentage points as it looked to pull the economy out of …

Opinion | Modi has used tax cuts to slay the ghost of ‘suit boot ki sarkar’
5 years, 3 months ago

Opinion | Modi has used tax cuts to slay the ghost of ‘suit boot ki sarkar’

Live Mint  

Evidently, India’s finance minister does not read The Indian Express. Within days of that plea appearing in print, she had unveiled a radical corporate income tax cut and stunned the nation with the boldness of the measure and the vision behind it. The corporate tax cut cannot yet be called an economic stimulus measure because its effect will be felt …

Auto sector to gain from tax cut, says ICRA
5 years, 3 months ago

Auto sector to gain from tax cut, says ICRA

Live Mint  

Automakers and parts suppliers will benefit from the government’s step to cut corporate tax rates, rating firm ICRA Ltd said on Monday. Pavethra Ponniah, vice-president and sector head, ICRA, said the ongoing weak demand conditions may prompt original equipment manufacturers to pass on some benefits of tax revision to the end consumer with lower product prices. In a bid to …

Corporate tax cut makes India an investment destination; to attract foreign firms to set up units: Nirmala Sitharaman
5 years, 3 months ago

Corporate tax cut makes India an investment destination; to attract foreign firms to set up units: Nirmala Sitharaman

Firstpost  

Quoting experts, Nirmala Sitharaman said India is now much better than China in terms of rate, transparency, and tax administration New Delhi: India has become a highly competitive investment destination post-corporate tax reduction as the rates are now lower than that in China and most Southeast Asian countries, Finance Minister Nirmala Sitharaman said on Sunday. India was earlier at disadvantage …

Corporate tax cut credit positive, raises fiscal risks: Moody’s
5 years, 3 months ago

Corporate tax cut credit positive, raises fiscal risks: Moody’s

Live Mint  

Mumbai: Corporate tax reduction is credit positive for companies but increases the government's fiscal risks, global rating agency Moody's said on Saturday. However, it is credit negative for the sovereign, as it aggravates mounting risks for the government in meeting its fiscal deficit target, it said As such, the reduction in corporate income tax revenue —even when balanced against the …

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 …

Corp tax cut credit positive,but raises fiscal risks: Moody's
5 years, 3 months ago

Corp tax cut credit positive,but raises fiscal risks: Moody's

The Quint  

Mumbai, Sep 21 Corporate tax reduction is credit positive for companies but increases the government's fiscal risks, global rating agency Moody's said on Saturday. However, it is credit negative for the sovereign, as it aggravates mounting risks for the government in meeting its fiscal deficit target, it said As such, the reduction in corporate income tax revenue - even when …

Corporate tax cut can translate into maximum of 5 per cent product price reduction, say industry veterans
5 years, 3 months ago

Corporate tax cut can translate into maximum of 5 per cent product price reduction, say industry veterans

India Today  

Industry stalwarts welcomed the corporate tax cut but felt that it could have done much before. He added that the corporate tax cut will not help to reduce the prices of the flats beyond 5 per cent. # Amitabh Kant, CEO, NITI Aayog responded that the country has grown at an average 7.5 per cent in the last 5 years …

A deep cut: On corporate tax cuts
5 years, 3 months ago

A deep cut: On corporate tax cuts

The Hindu  

Finance Minister Nirmala Sitharaman ushered in Deepavali early for Corporate India and the markets on Friday with her announcement of deep cuts in corporate taxes and roll-back of some market-unfriendly proposals in the Budget she presented in July. The idea behind this move is obviously to generate private investment which is now at a low ebb, but an unstated intention …

The Hindu Explains | What corporate tax cut means for the Indian economy
5 years, 3 months ago

The Hindu Explains | What corporate tax cut means for the Indian economy

The Hindu  

In its boldest gambit yet to stir up the economy, the government on Friday issued an ordinance to reduce the corporate tax rate for domestic firms and new manufacturing units by 10 to 12 percentage points, effectively bringing India’s tax rates on par with its competing Asian peers. The story so far: Finance Minister Nirmala Sitharaman on Friday, among other …

Corporate tax reliefs to spur growth, create jobs: India Inc
5 years, 3 months ago

Corporate tax reliefs to spur growth, create jobs: India Inc

The Quint  

Bengaluru, Sep 20 The series of tax reliefs Union Finance Minister Nirmala Sitharaman announced in New Delhi on Friday would revive the economy, boost investment, spur growth and create jobs, said India Inc honchos across the sectors. "The corporate tax relief measures are a concrete step to stabilise the economy, boost investment, spur growth and create jobs in key sectors," …

Rupee rallies 40 paise to close at 70.94 after Nirmala Sitharaman's announcement on corporate tax cut
5 years, 3 months ago

Rupee rallies 40 paise to close at 70.94 after Nirmala Sitharaman's announcement on corporate tax cut

Firstpost  

Mumbai: The Indian rupee on Friday rose by 40 paise to settle at 70.94 to the US dollar after forex market sentiment was buoyed by the government decision to slash corporate taxes. Finance Minister Nirmala Sitharaman slashed corporate tax by almost 10 percentage points as the government looked to pull the economic growth out of six-year low. “Indian rupee shines …

Ravi Shankar Prasad asks electronics manufacturers to take full advantage of tax incentives
5 years, 3 months ago

Ravi Shankar Prasad asks electronics manufacturers to take full advantage of tax incentives

India TV News  

Union Minister Ravi Shankar Prasad on Friday exhorted electronics and mobile makers to take full advantage of the tax incentives announced by the government, saying the latest measures underlined the commitment to transform India into a manufacturing hub. The comments came after the government slashed the tax rate for companies by almost 10 percentage points to 25.17 per cent and …

Corporate tax cut historic; govt leaving no stone unturned to make India a better place to do business: Narendra Modi
5 years, 3 months ago

Corporate tax cut historic; govt leaving no stone unturned to make India a better place to do business: Narendra Modi

Firstpost  

Prime Minister Narendra Modi on Friday termed as “historic” the cut in corporate tax rates and asserted that economic announcements made in the last few weeks show that his government is leaving no stone unturned to make India a better place to do business New Delhi: Prime Minister Narendra Modi on Friday termed as “historic” the cut in corporate tax …

Historic: PM Narendra Modi hails corporate tax cut
5 years, 3 months ago

Historic: PM Narendra Modi hails corporate tax cut

India TV News  

Asserting that economic announcements made in the last few weeks show that his government is leaving no stone unturned to make India a better place to do business, Prime Minister Narendra Modi on Friday hailed Finance Minister Nirmala Sitharaman's economy booster. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve the competitiveness of …

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 …

Govt cuts corporate tax rate to 22%, relief on buyback tax
5 years, 3 months ago

Govt cuts corporate tax rate to 22%, relief on buyback tax

Live Mint  

Goa: The government on Friday cut corporate tax rate for companies that do not avail of any tax incentive to 22%. New manufacturing companies will have to pay an even lower corporate tax rate of 15%. To promote growth, a new provision is inserted in the Income Tax Act from fiscal year 19-20 to give any domestic company a 22% …

Corporate tax rates slashed as govt announces ₹1.45 lakh crore stimulus
5 years, 3 months ago

Corporate tax rates slashed as govt announces ₹1.45 lakh crore stimulus

Live Mint  

Finance Minister Nirmala Sitharaman today announced a big reduction in income tax rate for corporates. The government has slashed basic corporate tax rate to 22% from 30% while for new manufacturing companies it has been cut down to 15% from 25%. Revenue foregone for the reduction in corporate tax rate and other relief measures announced today will cost the government …

Corporate tax for companies over Rs 400 cr to be cut gradually to 25%, says Nirmala Sitharaman
5 years, 4 months ago

Corporate tax for companies over Rs 400 cr to be cut gradually to 25%, says Nirmala Sitharaman

Firstpost  

In her maiden Budget last month, Nirmala Sitharaman had cut corporate tax for companies with annual turnover of up to Rs 400 crore to 25% New Delhi: Finance minister Nirmala Sitharaman on Monday said corporate tax rate for companies with over Rs 400 crore turnover will be gradually cut to 25 percent, and the government will support wealth creators. In …

Budget 2019: Cut in corporate tax, higher income tax threshold, PHD Chamber asks
5 years, 11 months ago

Budget 2019: Cut in corporate tax, higher income tax threshold, PHD Chamber asks

Live Mint  

New Delhi: PHD Chamber Wednesday pitched for cutting corporate tax to 25 per cent, and raising income tax exemption limit for individuals to ₹3.5 lakh per annum in the forthcoming Budget. In a statement, PHD Chamber of Commerce and Industry President Rajeev Talwar said it looks forward to a "dynamic, inclusive and pragmatic budget" on February 1. Budget 2019: Read …

Govt says no scope for corporate tax cut in near future
6 years, 1 month ago

Govt says no scope for corporate tax cut in near future

Live Mint  

New Delhi: The government is unlikely to cut corporate income tax rate for large companies to 25% as promised in its FY16 budget because of revenue constraints, a senior tax official said. Tax rates can’t be cut further without a supporting mechanism to prevent evasion, said Akhilesh Ranjan, member at Central Board of Direct Taxes. The new code, Ranjan said, …

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 …

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