- Vinay Nair
Competitive Corporate Taxation: Answer to India's Economic Meltdown
Updated: Oct 1, 2019
As the Indian economy continues to struggle and nears the entrance of the ICU wing, Finance Minister Nirmala Sitharaman has come out with a long-awaited direct tax cut slated to bring some relief to investors and business owners.
On Friday, 20th September, 2019, Sitharaman informed the press and the public that her government was slashing corporate taxes by a significant margin
A move clearly designed to raise the spirits of industries grappling with the upsetting reality of the latest economic meltdown.
While such a tax cut leaves India at a pleasantly competitive position vis-à-vis other South East Asian economies, and makes good on the promise Sitharaman's predecessor Jaitley had long envisaged, it continues to raise some questions about the feasibility of this move in rescuing the Indian economy once and for all.
From the initial looks of it, this sharp corporate tax cut seems to have landed like the perfect early Diwali gift for businesses in India.
With the Centre having introduced the Taxation Laws (Amendment) Ordinance 2019 to modify the provisions of the Income Tax Act of 1961 and the Finance (No.2) Act of 2019