The Corporate Tax Rate for large domestic companies stands reduced from 30% to 25%.
It is even lower for manufacturing companies at 15%.
Toyota Kirloskar Motor appreciates this move by the Government of India.
Shekhar Viswanathan, Vice Chairman and Whole-time Director of Toyota Kirloskar Motor has welcomed the Corporate Tax Rate Cut announced by the Finance Minister. He comments that the move to slash the corporate tax for large domestic companies from 30% to 22% without incentive and exemption will spur growth and bring back India’s economy on its rails. He also hails the reduction of the tax on new local manufacturing companies to 15% without exemption or incentives.
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Shekhar Viswanathan applauds the move that the Minimum Alternative Tax (MAT) will not apply when adopting corporate tax structure change under the new arrangement. This move is sure to give respite to corporates. He opines that the positivity shown by the Government could lead to further investments, thereby creating more job opportunities. The Make In India campaign gets a fresh breath of oxygen with this move initiated by the Government.
The automobile sector should also benefit from these changes. Shekhar Viswanathan believes that the Government should move towards a Carbon-based GST policy that not only saves fuel but also lower emission levels considerably.