Excelsior Correspondent
JAMMU, Sept 25: The recent decision of Union Finance Ministry, Nirmala Sitharaman to reduce Corporate Tax rate on domestic companies from 30 to 22 per cent will have direct impact on UT of Jammu and Kashmir. This was stated by former Deputy Chief Minister, Kavinder Gupta, while addressing media persons at party office, here today.
He said the decision which will stimulate economic growth from the recent slowdown speaks of the commitment of Narendra Modi Government to boost the country’s economy.
He termed the decision as a bold step for domestic companies which will get additional profits, thus enabling them to invest more. He said after October 31 when, the State will be converted in to two Union territories, many investors will come forward for the investment in manufacturing and tourism industries.
Declaring that the Tax reform would be implemented from October 1st this year, Kavinder said that the decision to cut the Corporate Tax rate will boost corporate profit growth, kick-start private investment cycle, make the nation more competitive investment destination. Lower Corporate Tax will lead to earning benefit of 11-12 percent for capital goods, metals, banks, automobiles and consumer durables, he added.
He said due to prevailing slowdown, the spectre of job losses was gradually expanding from the beleaguered automobiles to consumer products, thus limiting job opportunities. The reduction in corporate taxes and the resultant gains in profits for companies that fall in the requisite tax bracket will be a good factor on jobs front. He said the decision of reduction in the taxes would result into higher cash flows which could be used by these companies for debt reduction and capex funding. Reduction in GST rate slabs, increase of depreciation percentage on commercial vehicles from 30 to 45 percent, reduction of GST rate on electric vehicles from 12 to 5 percent and exemption of GST on warehousing of cereals, pulses, fruits, nuts & vegetables etc. will bring good results.
Kavinder Gupta was flanked by Balbir Ram Rattan, Tilak Raj Gupta and Kulbhushan Mohtra.
Follow our WhatsApp channel
