Rajoo Goel, Secretary General, ELCINA
“The rate cut in Corporate Tax from 30% to 22% and MAT from 18 to 15% is indeed historic and a major boost to the slumbering economy. It will wake up the sleeping giant.
This is a measure the electronics industry which faces zero duties under ITA-1 Agreement of WTO has been pining for. ELCINA appreciates that while existing companies have been given a major relief, the support for new manufacturing companies is even higher with Corporate Tax rate reduced to 15%! This is a good move as it encourages new investments but also would not lead to significant revenue loss as typically new manufacturing companies face a longer gestation periods need a few years to stabilise and start making profits.
This step will also attract foreign investors to establish companies and manufacture in India as these rates match the Corporate Tax rates offered by competing countries such as Vietnam and Thailand. With India’s huge market, we should surely be a preferred location for global companies.”
Ashis Guha, CEO, RAH Infotech
“Slashing of corporate tax to an effective 25.17% inclusive of all surcharge and cess is a bold and well-timed step by the Hon’ble Finance Minister. It will give the market the much needed stimulus which is in line with Prime Minister Narendra Modi’s ‘Make In India’ initiative. Besides augmenting the local businesses, it will help spur the overall growth of the economy, boost investment opportunities and generate employment. The market has already responded very positively to this development.”