Statement by Chandrajit Banerjee Director General Confederation of Indian Industry
The Voice of Chandigarh News: Photo T S Bedi
CII is truly heartened by the Finance Minister’s announcements from Goa. The reduction in the corporate tax rate has been a long-standing demand from industry, as the high rate of taxation was making Indian industry uncompetitive vis-à-vis its peers. The decisions to bring the corporate tax rate down to 22% without exemptions, reduce MAT to 15% and tax new manufacturing companies at 15% will have a very positive impact on the cost of doing business in India.
CII would like to congratulate the Minister for taking this decision without fearing for the fiscal deficit, as a lower tax rate will itself lead to higher revenue buoyancy and higher collections. Together with earlier announcements, CII expects this to truly revive the ‘animal spirits’ of the industry and create the spark for igniting economic activity sooner rather than later.