Nagpur: Chartered Accountant Umang Agrawal, Immediate Past Chairman, Nagpur Branch of WIRC of ICAI, hailed the announcement by Finance Minister Nirmala Sitharaman drastically reducing corporate taxation for the India incorporation. CA Agrawal termed the move a ‘Bold step by FM for boosting manufacturing sector.’
“The government has ascertained that first and second quarter of this fiscal year were not going smooth and the demand for reduction in taxation by the corporate was at its all time high. The Finance Minister has announced something which the corporate were looking for since a long time. The drastic reduction in taxation for Corporates is expected to have positive long term impact. The reduction in tax will definitely help the India incorporation to focus on growth and enter into new fields of manufacturing,” he said.
CA Agrawal further praised the Finance Minister for accepting the long time demand of abolishing Minimum Alternative Tax (MAT) which was proving to be burden for many sick industries. The industries are going to have a major relief in this aspect. “The greatest fillip to the economy and GDP would happen with the new companies incorporating post 1st October with the 17.10% of effective tax rate. This would ensure that not only Indian population enter into manufacturing business but has the capability of attracting foreign players to manufacture their products in India thereby leading to increased capital infusing and increased employment opportunities.”
With such a bold step it is expected that the government will further decrease taxation for partnership/proprietary businesses in near future, Agrawal hoped.
“All in all the Finance Minister has tried to rebuild optimism in the economy and a reason to cheer about for all. Congratulations and thanks to the Finance Ministry for responding to the stakeholders needs on a timely basis,” the Chartered Accountant stated.