Hon' Finance Minister Announced Nirmala Sitharaman announced a massive tax rate cut in corporate tax from 32% to 25%.
Jimeet Modi - CEO of Samco Securities This is yet another surgical strike on bears and negative sentiments in the economy which will create an environment of surplus in the hands of corporates for making further investments and ease their liquidity concerns. The reduction to 22% in corporate taxes will result in a massive release of Rs 1,45,000 crore immediately in the economy which will boost sentiments and bring in real surplus to the corporates. Companies in consumer finance, banks both private and public sector, hotels all pay upwards of 32% tax will have maximum benefits, however, rest of the sectors will have a nominal positive impact. This is a path-breaking move delivered by Modi 2.0 government in the interest of economy at the cost government exchequer in times of crises which will go down well in the history.
Impact of Corporate Tax Rate Cut on the following sectors
Auto and Auto Ancillaries