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ET View: Corporate tax rate cut, the best reform so far

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As i am the student , there is any benifit for industries by reducing corporate tax


What I had predicted as Trial &Error method is being practiced by our FM.Only thing is all are happy about it.Markets are being manipulated to an extent that performance of companies is not reflected in markets.All prices are notional only.Indices go up due to PM''s visit to US and elections in MH.After a month things come to the real status.Only retail investors should keep away their funds safely.

The author''s sarcasm when referring to BJP and RSS adds no merit to his views. Criticism when direct commands respect even if opposed. With sarcasm, it loses its strength.

To he honest, GOI had no other option but to reduce corporate taxes. This was long overdue and one feels that taxes should be further reduced to make the market attractive for investors. Almost all major markets in the world have lesser corporate tax than India except Japan.




Economics policies seams to be in trial and error method

The worst reform for the Indian economy may be best for Markets in the short run.

I strongly feel that the country needs to reduced vacations and holidays. We are in competition with the world. Countries like USA and Canada have 10 holidays and 15 days vacation for the entire year. On the contrary, we have holidays, if a former minister passes away. Almost 20 holidays and Earned leave, casual leave and sick leave. Purchase short term and long term disability insurance for your employees. Maintain record of production of each employee.

Dilkhush replies to Indian

The biggest stupid idea I have ever seen. The target must be fixed for all employees instead of fixing working hours. Accountability of profit/ loss can only bring prosperity to the nation.

Dilip (Victoria)

Indian tax structure is impractical.Jaitley destroyed upcoming & Start Up industries. .

Sreenivasa Rao (Bangalore)

While these are good measures, and might protect the companies, can also bring some extra revenue to the government over time. However, unless demand is created for products for which money is required for which jobs are required, there will be no buyers for the products produced by companies. That will happen in two ways: by creating jobs and by lowering GST on a range of products. Otherwise, nothing will happen as products produced will stay in warehouses.

Rohan (india)

Godi Media defends any thing and everything done by it''s pay masters.

Kamal Jain (Mumbai)

No master stroke worked in last five years except management of media headlines !

No do something on the labour laws. Make a Indian workers to increase productivity by having fear of losing job. If the productivity increases income will go up. We Indians want job, but once get job not interested to work, wants only more salary.

Charles - I beg to differ on the ''We Indians...'' generalization. While Labor Laws do need evolution, generalizing the working class is unfair to the hard-working middle-class of India. Maybe your experience differs significantly from mine, but I really thing the average Indian worker is hard-working and sincere.

Sasikumar (alappuzha) replies to Bharat Suraiya

Mr. Suraiya; trade unions educate only about the rights of workers. whether Indian or otherwise; it is human nature to shirk work and relax if possible! when a dog chases you; you run fast; if it is a tiger you run faster!!

Dilkhush replies to sasikumar

Mr Sasi, it may be your nature to shirk work and relax. If accountability is fixed, most people work hard to achieve the given targets.

Rightly said. It''s the super-rich, who avoid taxes, evade legal processes and earn profits at the cost of the hard-working middle class.

Shashi Rewal (Paonta Sahi)

Welcome,But the confidence of money which has been shaken by CBI,E.D.having a free hand has to be revived,Government has seen its might,but could not bring back money which has gone to foreign countries,coax it now.


I am a long term investors in stock market. During recent months I lost Rs 5 lakh on investment of approximately Rs 20 lakh besides my loss in M/F.

Tough luck. Markets go up and down. Picking your portfolio is not the FMs job. In two successive statements, you appear to contradict yourself - you claim to be a long-term investor and complain of losses in the ''recent months''. What is your definition of long term, buddy ?

Why they canot implement DTC forth with?


Abolish LTCG tax. It will divert household savings to the stock market for benefit of all.

Snow replies to Yudhvir Talwar

Ain’t going to happen . Go put your money in FD’s if you can’t handle it .

diverting household savings to the stock market may not be everybody''s cup of tea, Yudhvir. Insurance-linked-investment instruments, deferred tax investment instruments, gold bullion, etc. can also be examined as alternatives.



Can I request getting back to non-Caps-Lock mode of typing, please ?

Chinmay Joshi. (Ahmedabad.)

Nice move by modi Government ����One onther move must requires all items under the GST @18% from 12% the gap of 6% tax which gives huge thrust to small scale units. I think after a 12% structureall categories of GST tax payers (regular dealers and Composition dealers remain almost same).if this happens I think nobody can stop to reach 5 trillion economy.

"common men" work for companies. pls understand. its a gamble. you cant say common men are not getting jobs and then not take a chance at the only way jobs can be created. that''s how economics works. we cant have our govts working against economics just to avoid being called suit booot ki sarkar. think on the flip side - why cant we have common men wearing suit and boot in 10 yrs from now!!!

Rajesh Shetty (Bangalore) replies to Ganesh R

Osm ..u hit the bull''e eye.

Can any Retail outlet or Auto outlet publish the increase stats tomorrow after these announcement - NO NO NO - because there will be ZERO impact for the common man who has been let high and dry.

These are Good Policy announcements ONLY but nothing for the common man, these policies will only balloon the corporate profits and their management will take away FAT BONUSES - this will never be passed on to the common man as its a corporate tax benefit. I feel once again the FM has MISSED OUT on the Basics of including common man to jump start consumption. I am not asking for tax cuts or GST cuts. These are all governance policy matters and NOT FOR COMMON MAN who is the REAL CONSUMER. Once again the ROGUE CORPORATE LOBBY have WON and FM has left the Individual Common Man HIGH and DRY as these benefits will never be passed on to the common man and these are effective for Tax assessment of 20-21 for FY 2019-20 so still 1 year away for anyone to benefit from these policies.


should have been done on budget day itself.. the government was under pressure

It is important to see that how much this move will able to increase consumption. Today the issue is that people don''t want to spend because they are not sure about their job''s and other regular earnings hence it is important that such moves should have deep down impact to boost consumption else corporate''s will get richer. Any additional capacity will come only when there is a demand.

Zabar Dust (jaipur)

They have no option but to do some big bang because demonetization killed the economy.


Bold and Dynamic move by Modi ji for which he is well known.

Any increase in Secure and Permanent jobs,will allow these people to spend FREELY without any fear of the Future.And tax on Salaries and Sales will also rise. So more jobs means more consumer spending,more taxes and a bubbling economy.


Rone wale hamesha rote rahenge. I think this would leave corporates with more money to re-invest , create jobs and boost growth. Good monsoon across the country would give fillip to demand and consumption. A bold move. Kudos to Government and Nirmala who has taken a first major long needed and awaited reform.


more money for corporates but what will common man have when they don''t have money to buy biscuits?

Kumarapuram Sadasivan (India) replies to Jay Boro

These measures may increase EMPLOYMENT,if new Cos are started.

kongov (chennai)

the government should have rather gone for income tax reduction for individuals. corporate tax reduction when there is slowdown / low growth, will help only companies to stay afloat. no benefit for exchequer also. benefits for new manufacturing companies is a good one.


This will not create the demand.......untill and unless consumer have money in their pocket to spend

Goswami Boy (Location) replies to Knowledge Point

Corporate tax is done with export market also in mind. Here local consumption does not come into picture.

Adi (India) replies to Knowledge Point

All these days people didn''t spend though they had money, reason behind that was uncertainty of jobs, a person might be fired from an corporate,due to heavy taxes the corporates wants to save money and the best way is to reduce employees. But now with the reduction on taxes for corporates being inforce will reduce the fear of job security among people for some extent, hence people start to spend little if not more... This will automatically create flow of currency in the market in due course of time, and the cycle begins, with reduction of corporate taxes the common man is also benefited in one way or the other.


Had it been done on July 5, the country would have been better off by now. Atleast some more FDI & FPI would have rejoiced and large number of investors been in positive territory and sentiments. But the habit of cutting tree and later planting isn''t shading as yet by this government, try well thought approach hence forth.

These measures may increase jobs.

dont waste this money saved from tax to useless things invest in people with good R&D and come up with new products. don’t ever blame govt for low sale levels without innovating new products and keep selling old products even after decade old

Senthil Kumar V (560016)

corporate can pay thier loan EMI with less risk than before. nothing more to change


Will this boost consumer demand? The degree of correlation (positive ?) between corporate tax reduction and investment/employment can only be verified in course of time. But by keeping the personal income tax rate at 30% the government of India has betrayed a discriminatory attitude, in a way imposed a tax on honesty of the salaried class. Low rates of interest on savings deposits and tax on the interest income earned from bank deposits further keep them in a very disadvantageous position.

Prince Gw (India)

Will corporate pass on thi benefit to its customers ? Unlikely. So how GDP will get boosted ? It becomes sop to corporates.


Kudos to the Finance minister!!!


would it not have been better if something done for gst instead.


It is the time for nation wide protest for income tax cut home and farm loan waiver.

rsg (mumbai)

These polyticians has Severe paralysis when even attempt is to be done for reducing personal income tax slab rates...and here they are concerned to provide lakhs of crores of income tax rebates....what a dual standard shows govts are only working as SLAVE for CAPITALIST group.Govt. has to put up condition (for low corporate tax rate) of giving appointment letters to all those whose jobs are eaten away by these corporate companies under name of recession, .


Rate cut is not going to be a positive effect, only by giving incentive with milestones will be fruitful. Unfortunately we are having a FM who doesn''t know how to respond to the current situation


Congratulations to Normal ji and Modi ji for a real gamec changer.Many many crores of new jobs will be created. It is a master stroke. Unprecedented, gamechanger, unbelievable....


Corporate tax reduction might still not be a game changer in the backdrop of low value chain efficiency across sectors and organic accruals to offset the burgeoning debt that shows no signs of abating. For all we know, policy making might not heal the chronically poor corporate performances. Revival of the economy is functionally driven by manufacturing performances rather than policy making. Sooner it is internalized, better are the realistic prospects of growth in real terms.

There are many scenarios. Since tax o Domestic Cos will be less,many Foreigners may use Locals as proxies for Investment which may generate Jobs.Indian Honchos may go for Caoex.New Cos means many ancillary industries and small shops,like Tea/Snack Vendors,Transport to the location of the NEW Cos etc.

Now to drop LTCG taxes on equities/mutual funds

Why not it be 15 % ? Also why not reduce Income Tax as per Singapore & other Asian countries?

This will make the rich richer and the poor poorer

you create more jobs by staying poor


We hope for personal income tax rate reduction also, it will be more effective for immediate consumption boost. Reduction in taxes on fuel, petrol & diesel will increase money in hands of people which in turn boosts consumption

JRP (Chennai)

Tax rate cut is not a reform at all.

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