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Coverage Dossier

Corporate leaders praise the government's move to slash corporate tax rates, saying it will have a positive impact on the economy and manufacturing sector. Find out what top industry leaders have to say.

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Coverage Dossier

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  1. CoverageDossier Comment by Mr. Gopichand Hinduja, Co- Chairman, Hinduja Group on Corporate Tax Rate Reduction September 20th – 23rd,2019

  2. INDEX

  3. Wires

  4. Corporate leaders hail cut in tax rate; say will boost economy,manufacturing • New Delhi: Industry leaders on Friday hailed the government move to slash corporate tax rate for companies. Following are the comments of top industryleaders: • Anil Agarwal, Executive Chairman, Vedanta Resources: The reduction of corporate taxes, including surcharges and cess, will significantly boost the economy and will provide a huge impetus for the manufacturing and infrastructure sector. We are confident this step, in coming days, will boost economic growth so that GDP can attain its true potential of 8-9 per cent. The journey looks extremely bright for creation of thousands of jobs in India and helping the country to march towards the USD 5trillion-mark. • State Bank of India Chairman Rajnish Kumar: The large reduction in corporate taxes across the spectrum of all companies is perhaps the boldest reform in the last 28 years! Such a rate cut will boost corporate bottomline, facilitate a reduction in productprices. • Additionally, the move to incentivise setting up new manufacturing units in India comes at the most opportune time for foreign companies who could be actively looking for opportunities to invest globally! This move could also materially lead to India effectively integrating with the global supply chain and a boost to Make in Indiacampaign! • Uday Kotak, CEO, Kotak Mahindra Bank: Reducing corporate tax rate to 25 per cent is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the US. It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive stepforward. • Kiran Mazumdar Shaw, Chairman, Biocon: Corporate tax rate cut from 30 per cent To 25.2 per cent to spur growth. This is a great move which will firmly revive growth and investment. My hats off to Finance Minister for this bold but most neededmove. • Gopichand P Hinduja, Co-Chairman, Hinduja Group: The tax reduction is an excellent step that was needed for Indian economy revival and manufacturing sector. It shows government is well seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tapping NRI investments, with this one so as to create deeper impact, instill more confidence in economy and amongstcorporates.

  5. This would certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst globalslowdown. • Dr Prathap C Reddy, Chairman, Apollo Hospitals: Corporate India has for long been advocating standardised rates of corporate taxation, as a tool to drive creation of investible surplus and enhanced dividend payouts to drive purchasing power. At this time of global economic slowdown, we see this announcement as a decisive move by the Government of India to enhance competitiveness of Indian industry in the domestic and internationalarena. • Ajay Singh, Chairman and Managing Director, SpiceJet: This is a huge step. It will improve sentiment and go a long way in reviving growth, investment and demand. This move, the latest in a series of a steps taken by the government to spur growth, demonstrates the ability of the Finance Minister to come up with big solutions to bigproblems. • The Finance Minister has hit the ball out of the Arun Jaitleystadium! • Sugata Sircar, CFO, Schneider Electric-India: The series of confidence building measures announced by the government recently and underscored by the Finance Minister on Friday is expected to create a positive sentiment in the market in terms of demand generation as well as investment. The lower rate announced for domestic manufacturing companies formed after October 2019 is expected to boost investments in the manufacturingsector. • Ashishkumar Chauhan, MD & CEO, BSE: The slew of historic measures has brought down Indian corporate tax rates to amongst the lowest in the world especially for the new manufacturing companies. These decisions will be celebrated as historic and will go a long way in improving 'Ease of Doing Business In India' evenfurther. • There are several other fiscal measures that have also been announced which all point to the government's commitment to promote the business activities and enhance job creation manifold. These announcements will further boost the investor confidence and start the investmentcycle.

  6. Tax reduction excellent step to revive economy:Hinduja London, Sep 20 : Leading British-Indian industrialist Gopichand Hinduja on Friday welcomed the reduction in corporate tax rate in India, calling it "an excellent step" to revive the economy and manufacturing sector. The co-chairman of the Hinduja Group said the government is well seized of the economic challenges facingit. "The current reduction in corporate tax announced by Finance Minister Nirmala Sitharaman is an excellent step that is needed for the Indian economy's revival and (boosting) manufacturing sector," Hinduja said in a statement. "I only wish more such steps which the government is already contemplating could be taken together in one go, like tapping the NRI investment, so as to create deeper impact, instill more confidence," hesaid. He said the tax reduction would certainly help put businesses back on track, generate employment and keep India as the principal destination for investments amidst global slow down. The Indian government on Friday slashed the income tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help createjobs. Finance Minister Sitharaman said the reduction in tax rates has been done by promulgating an ordinance to an amendment to the Income TaxAct.

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  9. https://economictimes.indiatimes.com/news/economy/policy/bold-brilliant-bazooka-heres- what-experts-are-saying-about-the-finance-ministers-corporate-tax- cut/articleshow/71214764.cms Making the announcement, Finance Minister Nirmala Sitharaman said the new tax rate will be applicable from the current fiscal which began on April1. In a major fiscal booster, the government on Friday slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies. Making the announcement, Finance Minister Nirmala Sitharaman said the new tax rate will be applicable from the current fiscal which began on April1. The reduction in corporate tax rates follows a series of steps to boost demand and investments after growth slowed to 5% in the quarter ended June. The move puts India’s tax rate on par with Asian peers and will boost efforts to attract investments as companies look for alternative destinations to sidestep supply chain disruptions from the U.S.-China tradewar. Here's how everyone from policymakers, to industrialists and ministers arereacting: “The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve the competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians.” -NarendraModi “With this announcement we are looking at revival of animal spirits. Liquidity, capital and sentiment is being aimed at by the Finance Minister and their revival is being is the target of thegovernment. Markets are reacting well and this will continue.” -Vikas Khemani, Founder, CarnelianCapital “This is a brilliant move and I think this is the way forward. It will push manufacturing in India. More importantly, these are all measures to establish that the government is determined to take India forward and that it understands what is happening on ground. I believe this was the right time to introduce these measures, the RBI and government have worked together and this is the 4th booster and will revive the economy.” -Amitabh Kant, CEO, Niti Aayog“ FM's announcements today will give necessary fillip to the economy which we've been hoping for. The announcement on tax will help companies like Coal India, Infosys, and Wipro. We have had a series of measures, today's measures are the largest” -Piyush Goyal, Unionminister “It is a bold step and a highly positive one for the economy.” -Shaktikanta Das, RBIGovernor “This Step opens up expectations of more policy measures that would encourage investments. It'll increase the earning expectations for companies, they are staring at a straight rise in profit ofalmost

  10. 10%. Investors were looking for a trigger to enter the market and I'm sure this is the trigger they needed.” -Sunil Singhania, Abakkus Assetmanager “This is an extraordinarily good announcement, it is the big bang reform we have been asking for it and glad that this was announced. It is a positive sign that the government is aware of what is happening and is aligned towards revival of animal spirits. It will encourage the FIIs and will bring them back to invest more. Our manufacturing companies were paying full tax now we will reinvest what we will save and that will create jobs. The financial sector will see a good positive change. This will make India a very attractive destination for foreign investors.” -Ajay Piramal, Piramal Group“ It’s a big bazooka and a very positive step, having the capability of reviving the economy.” -Vaibhav Sanghavi, co-CEO, Avendus Capital Public Markets AlternativeStrategies “In a major boost to revive flagging animal spirits and position India as one of the most attractive business destinations, the government has announced a slew of measures that would act as a force multiplier for the flagging economic engine.” -Ajay Bodke CEO of portfolio management services at PrabhudasLilladher. “Reduction in corp tax rate welcome, doubtful whether investment will revive” -JairamRamesh, Congress “Corporate Tax Rate Cut From 30% To 25.2% To Spur Growth- this is a great move which will firmly revive growth n investment. My hats off to FM for this bold but most needed move.” -Kiran Mazumdar Shaw “There cannot be a better day for India than what has happened today, it is amazing what a bold move by Sitharaman and Modi government. What they have done has not happened anywhere in the world but again I am saying public sector, public sector banks (need to) reduce the holding of government to the 50% and then see what happens, India will be on a very different level.” -Anil Agarwal,Chairman, Vedanta “What the government has done is a very major step. Suddenly the focus is on the importance of manufacturing, making it a very attractive avenue for investment. Ultimately what you want is a lot more investments and what they have said about taxation on new companies coming in is a very innovative and extremely important step.” -R C Bhargava, Chairman, MarutiSuzuki. “The current reduction in Corporate Tax by Finance Minister is an excellent step that was needed for Indian economy revival and manufacturing sector. It shows the government is well seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tapping NRI investments, with this one so as to create deeper impact, instill more confidence in the economy and amongst Corporates. This would certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst global slowdown.” -Gopichand P. Hinduja, Co- Chairman

  11. https://www.business-standard.com/article/economy-policy/india-inc-hails-tax-cuts-says- move-will-boost-investments-spur-demand-119092000472_1.html With the government reducing the corporation tax rates, industry leaders say the measures would increase investments, spur demand and encourage MNCs to shift their manufacturing units to India, as new factories will attract tax rates of only 15 percent. “This is an excellent move to bring back confidence and will boost investment by corporates. It is a real game-changer and the government should revisit personal taxation as well,” TVS Motor Chairman Venu Srinivasan said soon after the Finance Minister Nirmala Sitaraman made the blockbuster announcement in Goa. The Finance Minister said the corporation tax rate for existing firms has been cut to 22 per cent now from 30 per cent with effect from April 1, 2019. This brings down the effective tax rate, inclusive of surcharges, for companies to 25.1 per cent. At the sametime, the corporate tax rate for new manufacturing firms registered after October 1 is slashed to 15 per cent from 25 per cent. The effective tax rate, inclusive of surcharges, for these companies, will now be 17 percent. This benefit is available to companies that commence production on or before March 31, 2023. With this, the new tax rates now bring India broadly into line with those in the Southeast Asian countries (See Table). Today’s announcements will also encourage multinationals to shift their plants to India, as the government announced that it would tax them at a lower rate of 15 per cent. Among the large players, Apple is planning to invest in a new plant to make Apple products likeiPhones. Gopichand Hinduja, Co-Chairman of Hinduja Group said the current reduction in corporate tax was needed for the revival of the Indian economy and manufacturing sector. “It shows the government is well seized of the economic challenges facing all of us. I only wish more such steps could be taken together in one go like tapping NRI investments to create deeper impact, instill more confidence in economy and among corporates. This would certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst global slowdown,” hesaid. "The tax rate cuts come at the right time before festive season and will spur investments and create jobs. The tax cuts will boost consumption sentiment before a three-month-long festive season that starts next month,” Housing Development Finance Corp Ltd CEO, Keki Mistrysaid. “It will also help boost growth over the next two-three quarters and the steps will boost corporate profitability, dividend payment ability," headded. India’s move to cut corporate tax rate will help companies do a lot of things to increase demand for automobiles, which was witnessing an unprecedented decline,” R C Bhargava, chairman of Maruti Suzuki India Ltd said. “While the cuts won’t increase demand from customers, it’s possible to look at pricing policies,” hesaid.

  12. “The Finance Minister’s mega corporate tax stimulus is a major move to boost investors sentiments, encourage manufacturing and awaken animal spirits in the economy. The cut in corporate tax from 30 per cent to 22 per cent without exemptions has been a long standing demand of industry and is an unprecedented and bold move by the Government,” said Vikram Kirloskar, President,CII. Neeru Ahuja, partner, Deloitte said, “We should see higher investment flows coming into India as net return to investors will be very attractive now.” According to him, effective corporate tax rate of about 35% coupled with dividend distribution tax rate of about 20% was becoming uncompetitive as return on investment waslow. “Reducing the corporate tax rate and for new entrants setting up manufacturing units is a big boost. It has two important effects. One the domestic environment which was sluggish due to slowdown is going to fade with lowered corporate taxes and second the Make in India will see a boost as well,” said Mustafa Nadeem, CEO, EpicResearch. According to Ajay Bodke, CEO, PMS Prabhudas Lilladher, the measures will attract hundreds of billions of dollars of FDI & FII flows over the mediumterm.

  13. https://www.business-standard.com/article/pti-stories/tax-reduction-excellent-step-to-revive- economy-hinduja-119092000707_1.html Leading British-Indian industrialist Gopichand Hinduja on Friday welcomed the reduction in corporate tax rate in India, calling it "an excellent step" to revive the economy and manufacturingsector. The co-chairman of the Hinduja Group said the government is well seized of the economic challenges facingit. "The current reduction in corporate tax announced by Finance Minister Nirmala Sitharaman is an excellent step that is needed for the Indian economy's revival and (boosting) manufacturing sector," Hinduja said in astatement. "I only wish more such steps which the government is already contemplating could be taken together in one go, like tapping the NRI investment, so as to create deeper impact, instillmore confidence," he said. He said the tax reduction would certainly help put businesses back on track, generate employment and keep India as the principal destination for investments amidst global slowdown. The Indian government on Friday slashed the income tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help createjobs. Finance Minister Sitharaman said the reduction in tax rates has been done by promulgating an ordinance to an amendment to the Income TaxAct.

  14. https://www.financialexpress.com/economy/industrialist-gopichand-hinduja-welcomes- reduction-in-corporate-tax-rate-calls-it-excellent-step-to-revive-economy/1712463/ Leading British-Indian industrialist Gopichand Hinduja on Friday welcomed the reduction in corporate tax rate in India, calling it “an excellent step” to revive the economy and manufacturing sector. The co- chairman of the Hinduja Group said the government is well seized of the economic challenges facing it. “The current reduction in corporate tax announced by Finance Minister Nirmala Sitharaman is an excellent step that is needed for the Indian economy’s revival and (boosting) manufacturing sector,” Hinduja said in a statement. “I only wish more such steps which the government is already contemplating could be taken together in one go, like tapping the NRI investment, so as to create deeper impact, instill more confidence,” hesaid. He said the tax reduction would certainly help put businesses back on track, generate employment and keep India as the principal destination for investments amidst global slow down. The Indian government on Friday slashed the income tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boosteconomic growth rate from a six-year low by incentivising investments to help createjobs Finance Minister Sitharaman said the reduction in tax rates has been done by promulgating an ordinance to an amendment to the Income TaxAct.

  15. https://timesofindia.indiatimes.com/business/india-business/corporate-leaders-hail-cut-in-tax- rate-say-will-boost-economy-manufacturing/articleshow/71218162.cms • NEW DELHI: Industry leaders on Friday hailed the government's move to slash corporate tax rate for companies. Following are the comments of top industry leaders: * Anil Agarwal, executive chairman, Vedanta Resources: The reduction of corporate taxes, including surcharges and cess, will significantly boost the economy and will provide a huge impetus for the manufacturing and infrastructure sector. We are confident this step, in coming days, will boost economic growth so that GDP can attain its true potential of 8-9 per cent. The journey looks extremely bright for creation of thousands of jobs in India and helping the country to march towards the $5trillion-mark. • State Bank of India chairman Rajnish Kumar: The large reduction in corporate taxes across the spectrum of all companies is perhaps the boldest reform in the last 28 years! Such a rate cut will boost corporate bottomline, facilitate a reduction in productprices. • Additionally, the move to incentivise setting up new manufacturing units in India comes at the most opportune time for foreign companies who could be actively looking for opportunities to invest globally! This move could also materially lead to India effectively integrating with the global supply chain and a boost to Make in India campaign! • Uday Kotak, CEO, Kotak Mahindra Bank: Reducing corporate tax rate to 25 per cent is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the US. It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive stepforward. • Kiran Mazumdar Shaw, chairman, Biocon: Corporate tax rate cut from 30 per cent to 25.2 per cent to spur growth. This is a great move which will firmly revive growth and investment. My hats off to finance minister for this bold but most neededmove. • * Gopichand P Hinduja, co-chairman, Hinduja Group: The tax reduction is an excellent step that was needed for Indian economy revival and manufacturing sector. It shows government is well seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tappingNRI • investments, with this one so as to create deeper impact, instill more confidence in economy and amongst corporates. Thiswould certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst global slowdown. • * Dr Prathap C Reddy, chairman, Apollo Hospitals: Corporate India has for long been advocating standardised rates of corporate taxation, as a tool to drive creation of investible surplus and enhanced dividend payouts to drive purchasing power. At this time of global economic slowdown, we see this announcement as a decisive move by the government of Indiato • enhance competitiveness of Indian industry in the domestic and internationalarena.

  16. Ajay Singh, chairman and managing director, SpiceJet: This is a huge step. It will improve sentiment and go a long way in reviving growth, investment and demand. This move, the latest in a series of a steps taken by the government to spur growth, demonstrates the ability of the finance minister to come up with big solutions to bigproblems. • The finance minister has hit the ball out of the Arun Jaitleystadium! • Sugata Sircar, CFO, Schneider Electric-India: The series of confidence building measures announced by the government recently and underscored by the finance minister on Friday is expected to create a positive sentiment in the market in terms of demand generation as well as investment. The lower rate announced for domestic manufacturing companies formedafter • October 2019 is expected to boost investments in the manufacturingsector. • Ashishkumar Chauhan, MD & CEO, BSE: The slew of historic measures has brought down Indian corporate tax rates to amongst the lowest in the world especially for the new manufacturing companies. These decisions will be celebrated as historic and will go a long way in improving 'Ease of Doing Business In India' even further. There are several other fiscal measures that have also been announced which all point to the government's commitmentto • promote the business activities and enhance job creation manifold. These announcements will further boost the investor confidence and start the investmentcycle.

  17. https://www.thehindu.com/business/india-inc-hails-corporate-tax- reduction/article29471881.ece Move may spur economy; auto sector buying sentiment likely toimprove India Inc. welcomed the Centre’s decision to reduce the corporate tax rate and the Minimum Alternate Tax N. Chandrasekaran, chairman, Tata Sons, said, “This is a big respite which would give the required stimulus to the economy.The reduction of MAT will also enable companies optimise their cash flows leading to increased investments. A great step towards the $5-trillioneconomy!” Aditya Birla Group chairman Kumar Mangalam Birla, chairman of Aditya Birla Group, believes that said the government’s decisive steps to pump-prime the economy would will lead to a big reset and revive animal spirits in CorporateIndia. “The reduction in corporate tax rates will not only lead to economic buoyancy but will also make Indian Industry more competitive globally. Beyond the immediate benefit of an investment incentive for the manufacturing sector, these steps will also lead to a paradigm shift in mindset. Above all, these measures only reaffirm the government’s willingness to move beyond incrementalism and act with conviction to pursue economic reforms,” said Mr.Birla. Sajjan Jindal, chairman, JSW Group, said, “The massive amount of savings in corporate tax, aggregating to ₹1.45 lakh crore, is a timely stimulus for the revival of our economy.” According to Harsh Goenka, chairman - RPG Enterprises, the FM has set the direction for pumping up theeconomy. “Like Chandrayaan, Sensex shoots off on the right trajectory reassuring everyone that hope should not be lost. The slash in corporate tax is a positive move that will help enterprises create long-term value and favourably impact the economy,”Mr. Goenka told TheHindu. “The slew of measures announced by the Finance Minister have come as a much needed gust of fresh air to resurrect and pump prime the economy. The bold and positive move to rationalize the corporate tax structure will help kick-start the next big economic upcycle,” Sunil Bharti Mittal, founder and chairman, BhartiEnterprises. Pawan Goenka, M&M MD tweeted, “Looks like Diwali has comeearly.” Gautam Adani, chairman, Adani Group, also tweeted, saying, “Amid challenging times, the reduction in corporate tax and MAT addresses the core challenge of liquidity reinstating India as an attractive investment destination.” Ashish Chauhan, MD and CEO, BSE said Indian corporate tax rates are now among the lowest in the world, especially for the new manufacturingcompanies. “These decisions will be celebrated as historic and will go a long way in improving ‘Ease of Doing Business In India’ even further. These measures will further boost the investor confidence and start the investment cycle. Removal of surcharge for domestic investors in line with the FPIs, will go long way in bringing much needed fresh investment and animal spirit in the India capital markets,” Mr. Chauhan told TheHindu.

  18. According to Mercedes-Benz India MD and CEO Martin Schwenk, lower tax will promote investment, help improve buying sentiment, and spur the auto sector in the longterm. Gopichand P. Hinduja, co-chairman, Hinduja Group, said Friday’s move was needed for economic revival and for the manufacturing sector. “It shows government iswell seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tapping NRI investments, with this one so as to create deeper impact, instill more confidence in economy and amongst Corporates,” said Mr.Hinduja. “This is a welcome move which will help Indian companies compete better on the global stage,” India Inc must now do its bit to invest more of its retained earnings in R&D and innovation, which are the surest guarantors of international competitiveness,” said Mukund Rajan, chairman, ECube Investment Advisors. Boman Irani, CMD, Rustamjee Group, said, “The government is taking progressive and pragmatic measures. It is a clear cut message taken to make India more competitive as businesses grow through low taxes. It is a reassuring move to the industry.”“It also indicates that the government is sensitive to the requirement of the industry.I would request the Finance Minister to provide the same type of benefits to the housing and real estate sector,” hesaid. “The sharp cut in corporate tax is one of the big reforms by the government. The measure will boost the manufacturing and real estate sector as well. This will help in the growth of the economy. The saving in corporate tax will provide growth capital for the industry which will be a booster for the economy. Corporate sentiment wise, it is positive,” said Kamal Khetan, chairman & managing director, Sunteck RealtyLtd. Rajiv Agarwal, managing director & CEO, Essar Ports Ltd said the move is good for India and the corporate sector. “It will help in new investment to come. It will enable companies to plough back the money for capital formation. The move shows that the government is keen to bring down taxation to international levels,” he said. “This big bang reform will kick-start the economy. Surplus funds available to companies will be invested in capex and talent. In a climate of global slowdown, this reform will make India an attractive destination for FIIs and long term investors. The announcement has brought parity to India’s corporate tax rate compared to that of advanced markets thus making it very competitive,” said Ajay Piramal, CMDhairman & managing director,, PiramalEnterprises. “This will lead to improve in profit margin and capital investment across sectors. This will also help manufacturing companies to make new capital investment. The overall demand scenario will improve,”said Vijay Mansukhani, managing director, MIRC Electronics which operates under the Onida brand. While welcoming themove,While welcoming the move, some by the Union Finance Minister Nirmala Sitharaman’s proposal to cut corporate tax and MAT reduction, leading industrialists called for a cut in personal income taxrate. In his message, TVS chairman Venu Srinivasan said the proposed cut was a real game changer. It was the most encouraging measures announced by the FM and bound to boost investment by corporates. “Would look forward to seeing similar measures on personal taxation,” hesaid. However, Gopal Srinivasan, founder-CMD, TVS Capital Funds, felt the Centre had ignored providers of risk capital. Profits of venture capital and private equity funds are taxed at full surcharge. “Today, thetax

  19. difference between long-term capital gains on listed markets and private markets are as high as 18 percentage (absolute) points,” hesaid. Officials of Ashok Leyland Ltd., described the tax cut as a welcome move as it said the move would spur investment in corporate, manufacturing and capital markets and expected a similar announcement for the commercial vehicles sectoralso. It is a superb move by the Centre to stimulate corporate savings, which would get channelised into investments, better pay, promotions and it would directly stimulate demand. These good measures to stimulate demand should win back sentiment and propel the economy back to 7% growth next year, said K.E. Ranganathan, managing director, Roca Bathroom Products PvtLtd. Apollo Hospitals chairman Dr. Pratap C. Reddy welcomed the announcement and said it was a decisive move by the Centre to enhance competitiveness of Indian industry in the domestic and international arena. “In healthcare, this will give a boost for the manufacture of domestic consumables and devices,” hesaid. It is a right step towards the revival of the economy and tackling the economic slowdown in the long- term. Besides, it would boost the earnings of the domestic manufacturing companies, said Amarendran Vummidi, managing partner, Vummidi BangaruJewellers. T.T. Srinivasaraghavan, MD, Sundram Finance. said the Centre had taken a ‘real bold’step. Knight Frank India described it is a milestone effort towards kick starting the Indian economy and boost production. This substantial direct tax reduction will allow more liquidity for the corporates that are currently assuming drastic measures to protect their profitability, said its chairman and managing director ShishirBaijal

  20. https://www.thehindu.com/business/Economy/india-inc-celebrates-diwali-with-corporate-tax- cut/article29470640.ece Chieftains of India Inc. cheers government decision to reduce corporate tax, a move seen to spur investments, revive growth and the animal spirits in CorporateIndia. Finance Minister Nirmala Sitharaman on Friday announced to reduce corporate tax to 22% and for new manufacturing companies set-up post October 2019 to15%. Welcoming the move, N Chandrasekaran, Chairman, Tata Sons said, “This is a big respite which would give the required stimulus to the economy. The reduction of MAT will also enable companies to optimize their cash flows leading to increased investments. A great step towards the 5 trillion economy!” Kumar Mangalam Birla, chairman of Aditya Birla Group, believes that government’s decisive steps to pump-prime the economy will lead to a big reset and revive animal spirits in CorporateIndia. “The reduction in corporate tax rates will not only lead to economic buoyancy but will also make Indian Industry more competitive globally. Beyond the immediate benefit of an investment incentive for the manufacturing sector, these steps will also lead to a paradigm shift in mindset. Above all, these measures only reaffirm the government’s willingness to move beyond incrementalism and act with conviction to pursue economic reforms,” said Mr.Birla. Sajjan Jindal, chairman of JSW Group sees this move as a timely stimulus. “These are welcome steps that would not only revive the sentiment but also enhance the competitiveness of the Indian industries. The massive amount of savings in corporate tax due to the measures declared today aggregatingto ₹1,45,000 crore is a timely stimulus for the revival of our economy,” Mr. Jindal told TheHindu. According to Harsh Goenka, Chairman — RPG Enterprises, FM has set the direction for pumping up the economy. “Like Chandrayaan, Sensex shoots off on the right trajectory reassuring everyone that hope should not be lost. The slash in corporate tax is a positive move that will help enterprises create long- term value and favourably impact the economy,” Mr. Goenka told TheHindu. “The slew of measures announced by the Finance Minister have come as a much needed gust of fresh air to resurrect and pump prime the economy. The bold and positive move to rationalize the corporate tax structure will help kick-start the next big economic upcycle," Sunil Bharti Mittal, Founder and Chairman, BhartiEnterprises. Some CEOstook on the social media to welcome the move. “Looks like Diwali has come early,” Mahindra and Mahindra Managing Director Pawan Goenkatweeted. Finance Minister also announced the reduction of Minimum Tax Rate (MAT) from 18.5% to15% “Amidst these challenging times, the reduction in corporate tax & MAT will infuse confidence in the economy. It also addresses the core challenge of liquidity reinstating India as an attractive investment destination,” Gautam Adani, Chairman, Adani Group,tweeted.

  21. “Woke up in the U.S to this news. The best way to start the day. Not only because companies will pay less tax.But because this isn’t just another policy tweak. @nsitharaman fired a shot that will be heard around the world. India has sent an invitation letter to global investors,”Anand Mahindra, chairman Mahindra Grouptweeted. Ashish Chauhan, MD and CEO, BSE believes that Indian corporate tax rates have come down to amongst the lowest in the world especially for the new manufacturing companies. “These decisions will be celebrated as historic and will go a long way in improving ‘Ease of Doing Business In India ‘ even further. These measures will further boost the investor confidence and start the investment cycle. Removal of surcharge for domestic investors in line with the FPIs, will go long way in bringing much needed fresh investment and animal spirit in the India capital markets,” Mr. Chauhan said. According to Mercedes-Benz India MD & CEO Martin Schwenk, the reduction in corporate tax will promote investment, help sustain profitability during challenging times and should also improve buying sentiments, thus helping the auto sector in longterm. Mr. Gopichand P. Hinduja, Co-Chairman — Hinduja Group believes that the reduction in corporate tax was needed for Indian economy revival and manufacturingsector. “It shows government is well seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tapping NRI investments, with this one so as to create deeper impact, instill more confidence in economy and amongst Corporates,” said Mr.Hinduja. “This is a welcome move which will help Indian companies compete better on the global stage. India Inc must now do its bit to invest more of its retained earnings in R&D and innovation, which are the surest guarantors of international competitiveness,” said Mukund Rajan — Chairman, ECube Investment Advisors.

  22. https://www.timesnownews.com/business-economy/economy/article/corporate-lenders-hail- cut-in-tax-rate-say-will-boost-economy-manufacturing/492254 Industry leaders on Friday hailed the government move to slash the corporate tax rate for companies. Given below are the comments of top industry leaders. Nirmala Sitharaman, corporate taxIndia Inc hails cut in tax rate; says will boost economy New Delhi: Industry leaders on Friday hailed the government move to slash the corporate tax rate for companies. Following are the comments of top industryleaders: Anil Agarwal, Executive Chairman, Vedanta Resources: The reduction of corporate taxes, including surcharges and cess, will significantly boost the economy and will provide a huge impetus for the manufacturing and infrastructure sector. We are confident this step, in coming days, will boost economic growth so that GDP can attain its true potential of 8-9 per cent. The journey looks extremely bright for creation of thousands of jobs in India and helping the country to march towards the USD 5 trillion-mark. State Bank of India Chairman Rajnish Kumar: The large reduction in corporate taxes across the spectrum of all companies is perhaps the boldest reform in the last 28 years! Such a rate cut will boost corporate bottomline, facilitate a reduction in product prices. Additionally, the move to incentivise setting up new manufacturing units in India comes at the most opportune time for foreign companies who could be actively looking for opportunities to invest globally! This move could also materially lead to India effectively integrating with the global supply chain and a boost to Make in Indiacampaign! Uday Kotak, CEO, Kotak Mahindra Bank: Reducing corporate tax rate to 25 per cent is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the US. It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive stepforward. Kiran Mazumdar Shaw, Chairman, Biocon: Corporate tax rate cut from 30 per cent To 25.2 per cent to spur growth. This is a great move which will firmly revive growth and investment. My hats off to Finance Minister for this bold but most neededmove. Gopichand P Hinduja, Co-Chairman, Hinduja Group: The tax reduction is an excellent step that was needed for Indian economy revival and manufacturing sector. It shows the government is well seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tapping NRI investments, with this one so as to create deeper impact, instill more confidence in the economy and amongstcorporates. This would certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst globalslowdown. Dr Prathap C Reddy, Chairman, Apollo Hospitals: Corporate India has for long been advocating standardised rates of corporate taxation, as a tool to drive creation of investible surplus and enhanced dividend payouts to drive purchasing power. At this time of global economic slowdown, we see this announcement as a decisive move by the Government of India to enhance the competitiveness of Indian industry in the domestic and internationalarena.

  23. Ajay Singh, Chairman and Managing Director, SpiceJet: This is a huge step. It will improve sentiment and go a long way in reviving growth, investment and demand. This move, the latest in a series of a steps taken by the government to spur growth, demonstrates the ability of the Finance Minister to come up with big solutions to bigproblems. The Finance Minister has hit the ball out of the Arun Jaitleystadium! Sugata Sircar, CFO, Schneider Electric-India: The series of confidence-building measures announced by the government recently and underscored by the Finance Minister on Friday is expected to create a positive sentiment in the market in terms of demand generation as well as investment. The lower rate announced for domestic manufacturing companies formed after October 2019 is expected to boost investments in the manufacturingsector. Ashishkumar Chauhan, MD & CEO, BSE: The slew of historic measures has brought down Indian corporate tax rates to amongst the lowest in the world especially for the new manufacturing companies. These decisions will be celebrated as historic and will go a long way in improving 'Ease of Doing Business In India' evenfurther. There are several other fiscal measures that have also been announced which all point to the government's commitment to promote the business activities and enhance job creation manifold. These announcements will further boost the investor confidence and start the investmentcycle.

  24. https://www.news18.com/news/business/this-is-bigger-than-20-budgets-blockbuster-friday- for-india-inc-after-sitharamans-big-bang-announcements-2316329.html In a major boost to employment and economic activity, the government on Friday slashed corporate tax rate for domestic companies to 25.17 per cent inclusive of all cess and surcharges for domestic companies, a move that was largely welcomed by India Inc as the gloom of an economic downturn loomslarge. “Tax concessions will bring investments in Make in India, boost employment and economic activity, leading to more revenue,” said Finance Minister Nirmala Sitharaman. These boosters for the India Inc have been announced at a time when the confidence in the Indian economy has given way to uncertainty. The Governor of Reserve Bank of India, Shaktikanta Das, on Friday welcomed the Finance Ministry’s decision to slash effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic firms and said the measures taken by the government will “help revive theeconomy”. While speaking at the India Today Conclave in this regard, Dassaid, “This is a bold and welcome decision. During Arun Jaitley’s tenure as FM (Finance Minister), the corporate tax was reduced from 30 to 25 per cent. This was one of the hurdles, and the measures will help revive theeconomy." Sitharaman also announced a reduction in the minimum alternate tax (MAT) rate for businesses availing tax breaks to 15% from 18.5%. The government also rolled back an increase in surcharge introduced in the July budget on capital gains made by individuals and other entities from the sale ofequity. Sitharaman told reporters here that an Ordinance has been passed earlier in the day giving immediate effect to the amendments to the Income Tax Act. The government will lose an estimated ₹1, 45,000 crore because of the liberal tax schemes. The finance minister’s big bang announcements were met with positive reactions by businessmen and industrialists, who see the measures as a hope to overturn fortunes and revive the pruning economy. “This is not bigger than the budget, this is bigger than at least 20 budgets,” said Samir Arora of Helios Capital. Kotak Mahindra Bank CEO Uday Kotak in a tweet said, “Reducing corporate tax rate to 25% is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the U.S. It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive stepforward.” Titan CFO, S Subramaninan told CNBC-TV18 that he, too, considers the move announced by the government as extremely positive, “This can be called an earlyDiwali.” “The cut in tax will go to the earnings straight away and we will be able to save 4% by rate cuts. Today’s big move will also boost earnings”, hesaid. Bicon chairman, Kiran Mazumdar Shaw said that the measures announced by the government today are “most wanted and most required” – one that will bring back investorsentiment.

  25. FM's announcements today will give necessary fillip to the economy which we've been hoping for, said Union minister Piyush Goyal, adding that the measures will help companies like Coal India, Infosys and Wipro. Leading British-Indian industrialist Gopichand Hinduja welcomed the reduction in corporate tax rate in India, calling it "an excellent step" to revive the economy and manufacturingsector. "The current reduction in corporate tax announced by Finance Minister Nirmala Sitharaman is an excellent step that is needed for the Indian economy's revival and (boosting) manufacturing sector," Hinduja said in astatement. Chairman of Tata Sons, N Chandrasekaran, called the move a "big respite". "Finance Minister has made a much awaited announcement reducing the corporate tax rates to 22% for all Corporates. This is a big respite which would give the required stimulus to the economy," hesaid,. Union Home Minister Amit Shah, too, chimed in the chorus and said that rationalisation of corporate tax had been a long pending demand, which is now a reality. "This move will make our corporates globally competitive and our markets much more exciting for potential investors," he wrote in atweet.

  26. https://www.fortuneindia.com/investing/markets-cheer-steep-corporate-tax-cut/103579https://www.fortuneindia.com/investing/markets-cheer-steep-corporate-tax-cut/103579 The S&P BSE Sensex jumped 2,284.55 points on Friday in intra-day trade led by a slew of measures finance minister Nirmala Sitharaman announced on Friday morning to boost growth and investment, the highlight of which is a steep cut in corporate tax. This is the highest intra-day gain the index has seen in a decade. The last time the 30-stock benchmark index saw a similar gain was on May 18, 2009, when the United Progressive Alliance returned to power. The Sensex jumped over 2,110 points (17.34%) to the day’s high of 14,284.21 points from the previous day’s close of 12,173.42. On Friday, it rose by 6.33% to the day’s high of 38,378.02 from the previous day’s close of 36,093.47, ending the day’s trade 38,014.62, 5.32% higher. The Nifty 50 too jumped 6.33%—over 677 points—to touch day’s high of 11,381.9 and closed the day higher by 5.32%—up over 569 points—at11,274.2. The increase in the S&P BSE MidCap was higher than the Sensex, both in terms of day’s high as well as at close. While the index touched the day’s high of 14,154.33—an increase of over 868 points (+6.54%) compared to previous day close of 13,285.34, it closed over 834 points (+6.28%) higher at 14,120.07. In contrast, the S&P BSE SmallCap, at day’s high of 13,222.89, registered a jump of over 519 points (+4.09%) compared to previous day close of 12,703.27. At close, the index registered a rise of over 500 points (+3.94%) at13,204.25. The total revenue foregone for the reduction in corporate tax rate and other relief measures is reckoned to be Rs 1.45 lakh crore. A release from the finance ministry says that, in order to promote growth and investment, a new provision has been inserted in the Income-tax Act, 1961, with effect from FY20 allowing domestic companies to pay income tax at 22% provided they do not avail any exemption/incentive. “The effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess,” the release said. “Also, such companies shall not be required to pay minimum alternate tax (MAT)”. The ministry’s announcement has put India Inc. in high spirits. Ajay Piramal, chairman of Piramal Group, says that the government has signalled that it is listening to the industry and is willing to embrace it as a partner for progress of the country. “We are certain that this big bang reform will kick-start the economy,” says Piramal. “Surplus funds available to companies will be invested in capex and talent,” he adds. In a climate of global slowdown, this reform, in Piramal’s view, will make India an attractive destination for foreign institutional investors and long-term investors. “The announcement has brought parity to India’s corporate tax rate compared to that of advanced markets thus making it very competitive,” Piramal adds. According to Gopichand P. Hinduja, co-chairman of Hinduja Group, the reduction in corporate tax is an excellent step that was needed for India’s economic revival and also for the manufacturing sector. “It shows government is well seized of the economic challenges facing all of us,” says Hinduja. “I only wish more such steps, which the government is already contemplating, could be taken together inone

  27. go like tapping NRI investments, with this one so as to create deeper impact, instil more confidence in economy and among corporates,” Hinduja adds. “This would certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst globalslowdown.” Gautam Hari Singhania, chairman and managing director, Raymond, who believes that corporate tax cut move on the back of fiscal stimulus announced earlier by the government is expected to revive investment sentiments and accelerate economic growth. Calling the corporate rate tax cuts as an extremely bold and positive step by the government, Singhania applauds: “This is a fitting response to a slowing economy and weakening consumption.” While he is of the view that tax cuts augurs well for the Indian economy on a long term and will promote investment and growth, the lower tax rate along with fair and even-handed tax administration will help Indian businesses become more competitive in the global space. For companies that enjoy tax holidays, and does not opt for the concessional tax regime and avails the tax exemption/incentive shall continue to pay tax at the pre-amended rate. “However, these companies can opt for the concessional tax regime after expiry of their tax holiday/exemption period,” the release said. Further, if these companies exercise the option they shall be liable to pay tax at the rate of 22% and option once exercised cannot be subsequently withdrawn. Further, in order to provide relief to companies which continue to avail exemptions/incentives, the rate of MAT has been reduced from existing 18.5% to15%. According to Aakash Uppal, partner, tax and regulatory services, BDO India, based on the data published by the Income Tax Department for tax returns for assessment year 2017-18, corporates formed about 1.5% of total taxpayers, however they contributed over 55% of income taxes. “This sure is a bold move by the government, considering the fact that there has been a dip in GST collections,” says Uppal. “However, this could be a good move to break the Catch-22 situation; improvement in business is likely to fillip tax collections,” Uppaladds. The reduction of corporate tax rates is currently restricted only to corporate entities only. “A similar relief to partnerships and limited liability partnerships (LLPs), which constitute a large number of tax payers would surely make way for an inclusive tax reform,” says Bhavin Shah, associate partner, tax and regulatory services, BDOIndia. Sitharaman’s latest measures also encompassed various types of equity market investors. The finance ministry release highlighted that in order to stabilise the flow of funds into the capital market, the enhanced surcharge introduced by the Finance (No.2) Act, 2019, will not apply on capital gains arising from the sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax, in the hands of an individual, Hindu undivided family (HUF), association of persons (AOP), body of individuals (BOI), and artificial judicial person (AJP). Also, the enhanced surcharge will also not apply to capital gains arising on sale of any security including derivatives, in the hands of foreign portfolio investors(FPIs). Further, investors would indirectly stand to gain from the government’s move to provide relief to listed companies which have already made a public announcement of buy-back before July 5, 2019, (the Union Budget day). “It is provided that tax on buyback of shares in case of such companies shall not be charged,” the releasesaid.

  28. A lot of this was expected on July 5, but the budget speech was lacklustre. While the Sensex had shed over 390 points at the close of July 5, on the following trading day (July 8) the Sensex closed 793 points lower—over 1,187 points over two trading days after the Budget. The fall was over 907 points in a single day if July 8’s low of 38,605.48 points was compared to July 5 closing of 39,513.39 points. And, in value terms, from ₹70.8 lakh crore on July 4, S&P BSE Sensex’s index market capitalisation saw a decline of 9.05% to ₹64.4 lakh crore on September19. The record gain on September 20 has helped the recovery of ₹3.24 lakh crore in market value in a single day. At ₹67.7 lakh crore, the index’s market capitalisation is still 4.48% lower compared to July 4, the eve of the UnionBudget. However, markets and market observers have been cheering the government’s latest move. Motilal Oswal, chairman and managing director of Motilal Oswal Financial Services says: “We do believe that we need fiscal stimulus to get out of this slowdown and monetary policy alone could not do that. Hence this move is very good for the country and markets.” Oswal is of the view that the tax rate reduction is positive for all companies to the tune of 3% to10% Mumbai-based Jimeet Modi, founder and CEO of SAMCO Securities, calls the move yet another surgical strike on bears and negative sentiments in the economy which will create an environment of surplus in the hands of corporates for making further investments and ease their liquidity concerns. According to Modi, companies in consumer finance, banks, hotels pay upwards of 32% tax which will have maximum benefits of the rate cut, while rest of the sectors will have nominal positive impact. “This is a path- breaking move delivered by Modi 2.0 government in the interest of the economy at the cost of government exchequer in times of crises which will go down well in the history,” saysModi. According to Devang Mehta, head of equity advisory at Mumbai-based Centrum Wealth Management, apart from the benchmark indices correcting, it was more to do with the sentiment which was hitting new lows day after day. “That seems to be dealt with by daring to cut corporate tax, which clearly has a positive impact on the earnings,” says Mehta, who believes that markets are a slave to earnings. “Hopefully, with positive trigger for higher earnings & change in prevailing pessimistic mood, it is imperative for investors to keep the faith and keep investing in companies with sound fundamentals and robust earnings growth, rather than getting carried away and buying duds,” Mehtaadvises. On lower tax rates’ positive impact on corporate earnings, Rusmik Oza, head of fundamental research at Kotak Securities, highlights that the effective tax rate of Nifty50 companies on an aggregate basis was 26% which will now come down to 25.17%. “There are only 20 Nifty companies which paid more than 30% effective tax rate and accounted for 43% of overall net profit in FY19,” says Oza. “Any company paying 33% tax rate will see its earning go up by 12%,” headds. Overall, Oza foresees Nifty earnings going up by nearly 5%-6% in FY20 as the effective tax rate was already lower at 26%. “Add the sentiment booster angle and the way this will be taken positively by FIIs and local investors we can expect the Nifty to rally by 9-10% from today’s low of nearly 10,700,” Oza adds. According to Siddharth Mehta, founder and CIO of Bay Capital Partners, the tax cuts announced are likely to create an additional surplus in the hands of corporates which in turn will allow for additional liquidity of nearly $20 billion in the short term. “While this will lift corporate confidence and allow for greater investment and job creation, this is a forward looking and progressive reform by the government to ensure India is a fiscally attractive jurisdiction and shows a willingness of the government toforego

  29. near-term revenues to build a longer-term competitive global investment destination to attract foreign capital,” saysMehta. According to Madhavi Arora, economist, forex and rates, at Edelweiss the effective corporate tax reductions is indeed a big supply side reform and should help spur investment cycle, which has been perpetually crippled. “However, the supply side tax reforms generally have relatively longer term economic returns, albeit impact the revenue side in the near term,”Arora warns. Besides, the current slowdown cycle, in Arora’s opinion, is different from the 2012-13 slowdown as the consumption demand is also significantly constrained in this cycle (unlike the last one) and thus could limit fresh investment demand in the near term. “Therefore a broader tax cut covering all economic agents would have probably yielded better economic returns,”Aroraopines. Arora’s argument finds resonance in an International Monetary Fund (IMF) working paper titled “U.S. Investment since the Tax Cuts and Jobs Act of 2017”. The paper’s authors—Emanuel Kopp, Daniel Leigh, Susanna Mursula, and Suchanan Tambunlertchai—conclude that there is no consensus on how strongly the Tax Cuts and Jobs Act (TCJA) has stimulated U.S. private fixed investment. “Some argue that the business tax provisions spurred investment by cutting the cost of capital. Others see the TCJA primarily as a windfall for shareholders,” the paper summary reads. Model simulations and firm-level data suggest that much of the weaker response reflects a lower sensitivity of investment to tax policy changes in the current environment of greater corporate market power, the paper furthernoted.

  30. https://www.fortuneindia.com/macro/india-inc-welcomes-corporate-tax-cut/103581https://www.fortuneindia.com/macro/india-inc-welcomes-corporate-tax-cut/103581 In a move to spur growth and private investment, finance minister Nirmala Sitharaman on Friday announced a cut in corporate tax rate to 22% for companies that don’t avail any tax incentive. The effective tax rate for these companies after surcharge and cess will be25.17%. In order to attract fresh investment in manufacturing and provide a boost to ‘Make-in-India’ initiative, the government announced that manufacturing companies incorporated after October 1 will have the option of paying income-tax at the rate of 15%. The effective tax rate for these companies will be 17.01% inclusive of surcharge and cess. Also, such companies shall not be required to pay minimum alternate tax(MAT). India Inc. and financial experts believe the move will help provide a level-playing field to local manufacturers and boost the manufacturing sector. Here’s what some of them say about the government’sdecision: Jatin Dalal, chief financial officer,Wipro It’s a huge boost to corporates and will enhance India’s position as a competitive destination for fresh foreign investments. ‘Make in India’ now gets a fresh impetus with reduced rates of corporate income tax. MAT (minimum alternate tax) rate reduction is also a bold move. Clarification on grandfathering of buyback tax on inflight buyback programmes as of July 5, 2019, is a comforting outcome. This would go a long way in restoring confidence in the market and nudge companies to makefresh investments. Kamal Nandi, business head and EVP, Godrej Appliances, and president,CEAMA This is a positive move for the Indian economy and will help provide level-playing fields to local manufacturers. It is expected to boost the economy, and, especially, the manufacturing sector is likely to get theimpetus. Gopichand P. Hinduja, co-chairman, HindujaGroup It shows the government is well seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tapping NRI investments, with this one so as to create deeper impact, instill more confidence in the economy and among corporates. This would certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst globalslowdown. Ajay Piramal, chairman, PiramalGroup With this, the government has signaled that it is listening to the industry and is willing to embrace it as a partner for the progress of the country. We are certain that this big bang reform will kick-start the economy. Surplus funds available to companies will be invested in capex and talent. The NBFC sector will save between ₹250 crore-₹300 crore that can potentially be redeployed as loans. In a climateof

  31. global slowdown, this reform will make India an attractive destination for FIIs and long-term investors. The announcement has brought parity to India’s corporate tax rate compared to that of advanced markets thus making it verycompetitive. Shekar Viswanathan, vice-chairman and whole-time director, Toyota KirloskarMotor This is a welcome structural change and comes as a great respite to corporates. This positive move from the government of India will lead to further investments in the country as well as create more business opportunities. The ‘Make in India’ initiative will thus get furtherimpetus. As far as the automotive sector is concerned, we believe that on a mid- to long-term basis, the government should consider the merits of moving towards a carbon (fuel efficiency)-based GST taxation policy which will not only lead to huge fossil fuel savings but will also help in loweringemissions. Anand Kripalu, managing director and CEO, DiageoIndia We welcome the bold changes introduced by the government, which will strengthen India Inc’s role as the nation’s job and wealth creators. The increased tax savings will boost cash flows, spur domestic and foreign investment, provide competitive tax rates and act as an economic driver towards ‘Make inIndia’. Dinesh Kanabar, CEO, Dhruvaadvisors The industry demand was for a tax rate of 25%. The FM has proposed 20-plus surcharge. The reduction of MAT, partial rollback of buyback tax are also very welcome moves. This should be a big booster for Make inIndia. Hitesh. D. Gajaria, partner and co-head of tax, KPMG in India Hugely positive step, this will conserve much-needed funds in the hands of corporates to turbocharge investments leading to more employment and capacity creation. This move will also reduce litigation on contentious issues around incentives. Next follow-through step eagerly awaited are moving the tax on dividends to shareholders and freeing companies from the Dividend Distribution TaxBurden. Naveen Aggarwal, partner and chief operating officer, tax, KPMG inIndia Major shot in the arm for the Indian economy courtesy the FM’s announcements of rationalising corporate tax rate to 22% (minus any other incentives/concessions) and for new manufacturing companies set-up post-October 2017 to 15%. In the face of global headwinds, this puts India right up on the map as a forward-looking, business-friendly and competitive operating environment. Increased surcharge to not apply on capital gains on listed securities and derivatives in the hands of FPIs. This will provide much-needed liquidity to the capital markets and is expected to turnaround theirfreefall. Motilal Oswal, CMD, Motilal Oswal FinancialServices We do believe that we need fiscal stimulus to get out of this slowdown and monetary policy alone could not do that. Hence, this move is very good for the country andmark. Foram Parekh, fundamental analyst, IndiabullsVentures The corporate tax cut will expand the bottom line of the companies and the profits will be utilised to start the CAPEX cycle. We further expect the RBI to slash at-least 50 bps rate cut till March 20 thereby infusing growth in the system. We believe GDP to bottom out in Q1 and can clock in a 6.5% GDPgrowth

  32. rate in FY20. With all the reforms galore taken to date by our FM in the right direction, we expect Nifty to touch 12,000 levels by December19. Vikas Vasal, partner and national Leader – Tax, Grant ThorntonIndia The government has addressed the key demand of businesses to align India’s corporate tax rate with the current economic reality where most large economies like the U.S. and the UK have taken similar measures to attract capital and investments. To give credit to the government, it is heartening to note that these rates have been announced now and that the government did not wait for the next budget. Hopefully, this should be followed by a similar tax rate reduction for individuals and other taxpayers soon as the festive season approaches. This would leave more money in the hands of the taxpayers, which in turn would boost overall demand and consumption in theeconomy. Hemendra Kothari, Chairman, DSP InvestmentManagers The move will structurally enhance corporate profitability, encourage Indian businesses to become globally competitive & also attract FDI capital to set up a manufacturing base in India and capitalise on the opportunities opening up due to shift intrade.

  33. https://www.outlookindia.com/newsscroll/tax-reduction-excellent-step-to-revive-economy- hinduja/1623278 London, Sep 20 (PTI) Leading British-Indian industrialist Gopichand Hinduja on Friday welcomed the reduction in corporate tax rate in India, calling it "an excellent step" to revive the economy and manufacturingsector. The co-chairman of the Hinduja Group said the government is well seized of the economic challenges facingit. "The current reduction in corporate tax announced by Finance Minister Nirmala Sitharaman is an excellent step that is needed for the Indian economy''s revival and (boosting) manufacturing sector," Hinduja said in astatement. "I only wish more such steps which the government is already contemplating could be taken together in one go, like tapping the NRI investment, so as to create deeper impact, instillmore confidence," he said. He said the tax reduction would certainly help put businesses back on track, generate employment and keep India as the principal destination for investments amidst global slowdown. The Indian government on Friday slashed the income tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help createjobs. Finance Minister Sitharaman said the reduction in tax rates has been done by promulgating an ordinance to an amendment to the Income TaxAct.

  34. https://www.theweek.in/news/biz-tech/2019/09/20/this-is-what-corporate-leaders-had-to- say-about-sitharamans-tax-rate-cut.html Industry leaders on Friday hailed the government move to slash the corporate tax rate for companies. Here is how top industry leaders commented on themove. Anil Agarwal, Executive Chairman, VedantaResources The reduction of corporate taxes, including surcharges and cess, will significantly boost the economy and will provide a huge impetus for the manufacturing and infrastructure sector. We are confident this step, in coming days, will boost economic growth so that GDP can attain its true potential of 8-9 per cent. The journey looks extremely bright for creation of thousands of jobs in India and helping the country to march towards the USD 5trillion-mark. State Bank of India Chairman RajnishKumar The large reduction in corporate taxes across the spectrum of all companies is perhaps the boldest reform in the last 28 years! Such a rate cut will boost corporate bottomline, facilitate a reduction in product prices. Additionally, the move to incentivise setting up new manufacturing units in India comes at the most opportune time for foreign companies who could be actively looking for opportunities to invest globally! This move could also materially lead to India effectively integrating with the global supply chain and a boost to Make in India campaign! Uday Kotak, CEO, Kotak MahindraBank Reducing corporate tax rate to 25 per cent is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the US. It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive stepforward. Kiran Mazumdar Shaw, Chairman, Biocon: Corporate tax rate cut from 30 per cent To 25.2 per cent to spur growth. This is a great move which will firmly revive growth and investment. My hats off to Finance Minister for this bold but most neededmove. Gopichand P. Hinduja, Co-Chairman, HindujaGroup The tax reduction is an excellent step that was needed for Indian economy revival and manufacturing sector. It shows government is well seized of the economic challenges facing all of us. I only wish more such steps, which government is already contemplating, could be taken together in one go like tapping NRI investments, with this one so as to create deeper impact, instill more confidence in economy and amongst corporates. This would certainly help put businesses back on track, generate more employment and most importantly, keep India as the principal investment destination amidst globalslowdown. Dr Prathap C. Reddy, Chairman, ApolloHospitals

  35. Corporate India has for long been advocating standardised rates of corporate taxation, as a tool to drive creation of investible surplus and enhanced dividend payouts to drive purchasing power. At this time of global economic slowdown, we see this announcement as a decisive move by the Government of India to enhance competitiveness of Indian industry in the domestic and internationalarena. Ajay Singh, Chairman and Managing Director,SpiceJet This is a huge step. It will improve sentiment and go a long way in reviving growth, investment and demand. This move, the latest in a series of a steps taken by the government to spur growth, demonstrates the ability of the Finance Minister to come up with big solutions to bigproblems. The Finance Minister has hit the ball out of the Arun Jaitley stadium! Sugata Sircar, CFO, SchneiderElectric-India The series of confidence-building measures announced by the government recently and underscored by the Finance Minister on Friday is expected to create a positive sentiment in the market in terms of demand generation as well as investment. The lower rate announced for domestic manufacturing companies formed after October 2019 is expected to boost investments in the manufacturingsector. Ashishkumar Chauhan, MD & CEO,BSE The slew of historic measures has brought down Indian corporate tax rates to amongst the lowest in the world especially for the new manufacturing companies. These decisions will be celebrated as historic and will go a long way in improving 'Ease of Doing Business In India' evenfurther. There are several other fiscal measures that have also been announced which all point to the government's commitment to promote the business activities and enhance job creation manifold. These announcements will further boost investor confidence and start the investmentcycle.

  36. https://www.moneycontrol.com/news/business/companies/tax-reduction-excellent-step-to- revive-economy-gopichand-hinduja-4459471.html The co-chairman of the Hinduja Group said the government is well seized of the economic challenges facingit. Leading British-Indian industrialist Gopichand Hinduja on September 20 welcomed the reduction in corporate tax rate in India, calling it "an excellent step" to revive the economy and manufacturing sector. The co-chairman of the Hinduja Group said the government is well seized of the economic challenges facingit. "The current reduction in corporate tax announced by Finance Minister Nirmala Sitharaman is an excellent step that is needed for the Indian economy's revival and (boosting) manufacturing sector," Hinduja said in astatement. "I only wish more such steps which the government is already contemplating could be taken together in one go, like tapping the NRI investment, so as to create deeper impact, instillmore confidence," he said. Nirmala Sitharaman press conference LIVE updates: Corporate tax relief concrete step to stabilise economy, says Tech Mahindra'sGurnani New corporate tax rates give companies flexibility to choose between tax structures: Seshagiri Rao, JSW Steel Nirmala Sitharaman GST press conference LIVE updates: Council's Fitment Committee not in favour of rate cut proposals He said the tax reduction would certainly help put businesses back on track, generate employment and keep India as the principal destination for investments amidst global slowdown. The Indian government on September 20 slashed the income tax rate for companies by almost 10 percentage points to 25.17 percent and offered a lower rate to 17.01 percent for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help create jobs. Finance Minister Sitharaman said the reduction in tax rates has been done by promulgating an ordinance to an amendment to the Income TaxAct.

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