Congress leader Rahul Gandhi on Friday took a swipe at the tax incentives announced by the Centre, saying it was aimed to push up the stock market ahead of Prime Minister Narendra Modi’s US tour when he is expected to meet many foreign investors.
Taking a pot shot at the Rs 1,45,000 crore revenue that the government will have to forego due to the reduction in corporate tax rate and other relief, Rahul Gandhi said that the Prime Minister’s trip is proving to be the world’s most expensive event ever.
“Amazing what PM is ready to do for a stock market bump during his #HowdyIndianEconomy jamboree. At + 1.4 Lakh crore Rs the Houston event is the world’s most expensive event, ever! But, no event can hide the reality of the economic mess ‘HowdyModi’ has driven India into,” he tweeted.
Earlier, Finance Minister Nirmala Sitharaman on Friday announced slashing of the corporate tax rate to 22 per cent for domestic companies and 15 per cent for new domestic manufacturing companies, besides other fiscal relief.
The effective tax rate for these companies would now be 25.17 per cent, inclusive of surcharge and cess. Also, such companies shall not be required to pay Minimum Alternate Tax (MAT).
The total revenue loss for the reduction in corporate tax rate and other relief is estimated at Rs 1,45,000 crore.
This is the biggest announcement so far by the Modi 2.0 government to fight the slowdown, which dragged down the GDP growth to a six-year low of 5 per cent in the April-June quarter of the current fiscal.
During his September 21-27 US visit Prime Minister Narendra Modi, besides holding talks with US President Donald Trump, would be meeting corporate honchos from across industries.
Sources said Modi will hold a CEOs roundtable at Houston on September 21 where the top bosses of over a dozen companies like BP, Exxonmobil, Emerson Electric Company, Vinmar International and IHS Markit would join the discussion. He is also expected to meet top executives of various start-ups and encourage them to have a wide presence in India.
Prime Minister Modi will be in the US from September 21 to 27. He will participate in a rally of Indian-Americans in Houston besides addressing the UN General Assembly in New York.