Maharashtra chief minister Devendra Fadnavis on Monday praised the Centre’s decision to cut corporate tax saying it would benefit the country and Maharashtra.
Union finance minister Nirmala Sitharaman had on September 20 slashed the tax rate for companies to 25.17% in an effort to get the economy back on track. “This is a very bold and courageous decision by the government as the global competitiveness of Indian companies had reduced due to the high tax rates. When there are high rates high rates, our companies fall behind, but now we can compete with other companies,” said Fadnavis.
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He also complimented the government saying, “Tax rates are always increased, governments normally don’t show the courage to reduce taxes — this is a courageous decision.” Fadnavis also said that Maharashtra would be the biggest beneficiary as large investments would now flow into the state, and said reduction of corporate tax would help companies to create more jobs. “Companies will reinvest this money, their financials will improve — more jobs will be created. This will increase demand in the market…The decision will benefit Mumbai and Maharashtra as 35% of the corporate tax money that goes to the exchequer generates from Mumbai,” he said.
Source: Economic Times
