india

Updated: Sep 20, 2019 16:41 IST

The Congress party on Friday called the government’s move to slash corporate tax rate “yet another U-Turn by the FM”. Pointing out that the Centre, in its union budget, had increased the corporate tax to 30% despite many objections, the Congress said that the government is refusing “to accept responsibility for destroying economy.”

“Your 2019 budget increased #CorporateTax to 30% despite many objections. Today after yet another U-Turn by the FM, you pat yourself on the back & call the move historic-The only thing historic is a govt that refuses to accept responsibility for destroying a thriving economy,” tweeted the Congress.

Earlier in the day, finance minister Nirmala Sitharaman slashed the corporate tax rates for domestic firms from 30% to 22% and for new manufacturing companies from 25% to 15% to boost economic growth.

Sitharaman said the reduction in tax rates has been done by promulgating an ordinance to an amendment to the Income Tax Act. The measures will have a revenue implication of Rs 1.45 lakh crore annually, she said.

Congress leader Rahul Gandhi, too, attacked Prime Minister Modi, instigating the government’s move to slash the corporate tax is to woo foreign investment during the prime minister’s ‘Howdy Modi’ event in Houston.

“Amazing what PM is ready to do for a stock market bump during his #HowdyIndianEconomy jamboree. At + 1.4 Lakh Crore Rs. the Houston event is the world’s most expensive event, ever! But, no event can hide the reality of the economic mess “HowdyModi” has driven India into,” tweeted Rahul Gandhi.

The slew of tax concessions, announced by Sitharaman, will be applicable from April 1 and any advance tax paid by the companies will be adjusted accordingly.

Calling the move to cut corporate tax as ‘historic’, Prime Minister Narendra Modi said ‘it will result in a win-win for 130 crore Indians’

“The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians,” the PM said in a tweet.