Toyota Kirloskar Motor has said the decision to reduce corporate tax will boost investments in the country and create more business opportunities.
Shekar Viswanathan, Vice-Chairman and Whole-time Director, Toyota Kirloskar Motor, said reduction of corporate tax rate for large domestic companies from 30 per cent to 22 per cent (without incentive or exemption) and lowering of the tax rate to 15 per cent from 25 per cent for local new manufacturing companies (without incentive or exemption) was a good move.
“As far as automotive sector is concerned, we believe that on a mid to long term basis, the government should consider the merits of moving towards a carbon (fuel efficiency)-based GST taxation policy which will not only lead to huge fossil fuel savings but will also help in lowering emissions,” he pointed out.
“It is also welcome to note that Minimum Alternative Tax (MAT) will not be applicable when adopting corporate tax under this new provision. This is a welcome structural change and comes as a great respite to corporates. This positive move from the government will lead to further investments in the country as well as create more business opportunities. The ‘Make in India’ initiative will thus get a further impetus.”
Giant leap, says Wipro
Software services company Wipro Ltd said the reduction in corporate tax will boost corporates and increase India’s position as a competitive destination for fresh foreign investments.
“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,” Jatin Dalal, Chief Financial Officer, Wipro Ltd, said.