Leading voices from the industry in Visakhapatnam on Saturday welcomed the reduction in corporate tax that was announced by Finance Minister Nirmala Sitharaman.
CII zonal chairman K.V.V. Raju, speaking to The Hindu, said the move was needed to revive the manufacturing sector. “It shows that the government is seized of the economic challenges. We can see resilience and commitment to support the industry. The step to cut corporate tax is historic, unprecedented and highly welcome,” Mr. Raju said.
He added that it would give a great stimulus to the ‘Make in India’ initiative and attract investments from across the world, and also improve the competitiveness of the private sector, especially among Asian competitors. “Our manufacturing companies are paying full tax now. We will reinvest what we can save and that will create more jobs. The financial sector will see a positive change. This will make India an attractive destination for foreign investors,” he said.
RINL Chairman-cum-Managing Director P.K. Rath tweeted that these measures would encourage investment in the manufacturing sector and boost the economy and benefit the steel industry at large.
GST reduction sought
Vizagapatam Chamber of Commerce & Industry former president A.V. Monish Row, while welcoming the move, called for a reduction in GST and personal income tax to raise demand for products.
“We hear jargon like supply-side economics and fiscal stimulus but the bottom line is this: if there is no demand for products, no one will invest as it would lead to losses. Take the case of UAE for example. Even with a zero tax policy, it has not become a manufacturing haven,” Mr. Row said, adding that investors were looking for stability in policy and more genuine reforms across the board for building the much-needed confidence in India’s growth story.
AP Chambers of Commerce and Industry Federation president G. Sambasiva Rao welcomed the slashing of corporate tax. “We were the first to raise the issue of slashing of corporate taxes and had requested the FM to roll over all loans for six months to prevent NPAs and to recast their debt,” he said.
