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Sep 20, 2019 09:45 PM IST | Source: Moneycontrol.com

Nirmala Sitharaman press conference highlights: Corporate tax relief to help stabilise economy, says Tech Mahindra's Gurnani

Addressing her fourth press conference to revive the economy, the FM announced a cut in the corporate tax rate for domestic companies and new domestic manufacturing companies.

  • Sep 20, 05:29 PM (IST)

    The stock markets responded positively to the relief measures announced today , with benchmark indices closing with biggest single-day gain in the last 10 years. Investors got richer by Rs 6,82,938.6 crore after the Sensex added 1,921 points and the Nifty gained 569 points.

    Click here for details on all that transpired in the market today. 

  • Sep 20, 03:45 PM (IST)

    Stay with Moneycontrol for LIVE updates on the GST Council press conference LIVE 

  • Sep 20, 08:35 PM (IST)

    Puneet Dalmia, Managing Director, Dalmia Bharat Group: Today’s reduction in corporate tax sends a powerful signal that the Government is absolutely determined to revive the economy. It also demonstrates government’s sensitivity and its faith in the corporate sector to contribute to the economic revival. This will improve the ability of India Inc to make fresh investments, speed up projects, and make a positive  impact on job creation. It’s a very bold move and will improve the sentiment dramatically.

  • Sep 20, 08:01 PM (IST)

  • Sep 20, 07:24 PM (IST)

    Jonathan Schiessl, Senior Vice President, IIFL India Equity Opportunities Fund told CNBC-TV18: The cut in corporate tax to 25 percent from 30 percent (with exemptions) and removal of additional surcharge on capital gains made by FII and domestic investors etc are certainly positive news. Tax regime which has been confusing for overseas investors for some time has been addressed by Finance Minister Nirmala Sitharaman, he said, adding the sentiments have been very poor and this move certainly draw attention back towards Indian market.

  • Sep 20, 06:48 PM (IST)

    Abheek Barua, Chief Economist, HDFC Bank: The recent tax move is likely to provide a boost to the economy. We are revising our GDP growth forecast to 6.5 percent from 6.3 percent for 2019-20. The corporate tax cut is likely to not only attract greater foreign investments but could also support some revival in the capex cycle (driven by greater corporate savings). Our analysis show that a 10 percent reduction in corporate tax rate can result in 0.20bps to 0.50 bps increase in GDP growth (based on the tax multiplier for India, RBI Working Paper, 2013).

  • Sep 20, 06:33 PM (IST)

    Jatin Dalal, Chief Financial Officer, Wipro Limited: The government has taken a giant leap in tax reforms. 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 rate reduction is also a bold move. Clarification on grandfathering of buyback tax on inflight buyback programs 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 make fresh investments.

  • Sep 20, 06:00 PM (IST)

    Shibani Kurian, Senior Vice President and Head of Equity Research, Kotak Mahindra AMC: This is a huge step in boosting the overall profitability of corporate India. This step along with some of the other measures announced including that the enhanced tax surcharge introduced in July 2019 shall not apply to Capital Gains on sale of equity share which is subject to STT (Securities Transactions Tax) would go a big way in restoring confidence in the Indian equity markets. One the biggest problems ailing the investment rate was low corporate savings and, to the extent, this tax cut boosts corporate savings, this is positive structurally for the improvement in private sector investment rate.

  • Sep 20, 05:55 PM (IST)
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