A tax cut from 30 percent to 22 percent for those companies who wouldn’t seek incentives and confessions is a smart step and nothing short of a major stimulus for the economy. If one considers the revenue forgone, it is a Rs 1.45 lakh crore stimulus package.
The tax bonanza will work in favour of corporations fighting a severe demand slump in two ways, first as a much-needed sentiment booster and second, to free up some cash that can be diverted to reinvestments or debt burden as rating agency Moody’s Investors Service has noted. “The extent of final impact on credit profiles of Indian corporates will depend on whether they utilize the surplus earnings for reinvestment in business, debt reduction or high shareholder returns,” Moody’s said.
https://www.firstpost.com/business/nirmala-sitharamans-bold-move-on-corporate-tax-cut-signals-shift-from-baby-steps-to-radical-reforms-precisely-what-the-economy-needs-now-7376071.html
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A tax cut from 30 percent to 22 percent for those companies who wouldn’t seek incentives and confessions is a smart step and nothing short of a major stimulus for the economy. If one considers the revenue forgone, it is a Rs 1.45 lakh crore stimulus package. The tax bonanza will work in favour of corporations fighting a severe demand slump in two ways, first as a much-needed sentiment booster and second, to free up some cash that can be diverted to reinvestments or debt burden as rating agency Moody’s Investors Service has noted. “The extent of final impact on credit profiles of Indian corporates will depend on whether they utilize the surplus earnings for reinvestment in business, debt reduction or high shareholder returns,” Moody’s said. https://www.firstpost.com/business/nirmala-sitharamans-bold-move-on-corporate-tax-cut-signals-shift-from-baby-steps-to-radical-reforms-precisely-what-the-economy-needs-now-7376071.html
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