Karnataka

Under Modi, India is ‘red carpet society’: Sitharaman

‘There is more transparency in economic system after demonetisation, GST’

Claiming that the recent decision to reduce corporate tax to 22% and MAT (Minimum Alternate Tax) rate to 15% was not just a reduction but a tax reform, Union Finance Minister Nirmala Sitharaman on Saturday said that through clean administration and reforms, Prime Minister Narendra Modi had transformed the country from “red tape society to red carpet society”, thereby giving a boost to economy.

She was delivering a special address at a programme organised jointly by Hubballi Branch of SIRC of Institute of Chartered Accountants of India and Karnatak Chamber of Commerce and Industry here on Saturday. Ms. Sitharaman said that with the lowest MAT rate of 15%, Mr. Modi had made fundamental changes in the economy.

The Finance Minister termed demonetisation and Goods and Services Tax (GST) as measures taken to reform the tax regime in the country and claimed that the country had stood with Mr. Modi during the exercise.

She admitted that there were issues with regard to implementation of the GST, which, she said, would have to be addressed collectively through the cooperation of the business community, chartered accountants, and tax practitioners.

She appealed to chartered accountants to keep themselves abreast of the developments in the tax regime and explain the same to their clients.

Elaborating on the issue of reduced MAT rate and tax exemptions, the Minister clarified that companies would have to choose either tax exemptions or reduced corporate tax. “Both cannot be availed. And this one needs to understand clearly,” she said.

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Printable version | May 28, 2020 1:52:18 PM | https://www.thehindu.com/news/national/karnataka/under-modi-india-is-red-carpet-society-sitharaman/article29606853.ece

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