The Finance Ministry has reduced the corporate tax rate to 22 % and 15 % respectively for domestic companies and new domestic manufacturing companies
The Indian automotive industry has hailed the bold announcements made by Finance Minister Nirmala Sitharaman to revive the economy. Rajan Wadhera, President, SIAM, said the reduction of the corporate tax rate to 22 % and 15 % respectively for domestic companies and new domestic manufacturing companies and no minimum alternate tax for companies not availing incentives under Income Tax Act will support investment as well as FDI in the auto sector as well as provide a big boost to Make in India for the automobile industry. He stated that these fiscal measures are expected to uplift market sentiments and improve demand for automobiles.
The Automotive Components Manufacturers Association (ACMA) said the government's latest measures would give a big impetus to domestic manufacturing and help attract investments in the private sector. Deepak Jain, President, ACMA, said the announcements are indeed heartening and reassuring and are steps in the right direction to give manufacturing, investments and economic activity a boost.
He hoped that the Central Government in consultation with the states will consider ensuring a uniform GST rate of 18 % on all auto components. Currently 60 % of auto components are at 18 %, while the rest are at 28 %.
Nishant Arya, Executive Director, JBM Group, said the government's objective to bring structural reforms in the economy by lowering the corporate tax will help in uplifting the market.
Nagesh Basavanhalli, MD & CEO, Greaves Cotton Ltd, said the government's measures will cheer the industry and add much-needed momentum to the economy ahead of the festive season.
Nagesh Basavanhalli, MD & CEO, Greaves Cotton Ltd, said the government's measures will cheer the industry and add much needed momentum to the economy ahead of the festive season.