New Delhi: The Confederation of Indian Industry (CII) said on Friday that drastic reduction in corporate taxes is a huge game-changer for the economy and a decisive announcement for awakening animal spirits of investors.
"It will catalyse investments -- particularly in manufacturing -- infuse huge confidence among investors and set a new springboard for growth," said its President Vikram Kirloskar. "This also indicates that the government is adopting a tax stimulus route rather than using increasing government spending route to help the recovery process of the economy. Coming just ahead of the festive season, there could not have been better news as the entire country gets ready to celebrate," said Kirloskar.
The major cut in tax rates places India in a formidable position to capture new growth opportunities and create massive employment, he added. Kirloskar said the step to reduce minimum alternate tax (MAT) to 15 per cent is a notable relief for the industry as it had been raised over the years. Alleviating enhanced surcharge on capital gains including for foreign portfolio investors and grandfathering companies with existing incentives is also a positive initiative, he said.