Lack of demand ails the economy. But that's not addressed, nor are declining exports; the bad old habit of 'loan melas' is back; and tax has been cut in a way that hurts states, writes T N Ninan
The government on Friday slashed corporate tax rates for companies by almost 10%
The finance minister announced a slew of measures to boost the slowing Indian economy
Slashing the government's take from corporate profits to 25.2 per cent from 34.9 per cent has given a boost to stock-market sentiment
The proposal, which would be effective for three years from fiscal 2018, needs parliamentary approval to be enacted.
The drop in tax rate would now bring India at par with most Asian economies, the report added
According to Nomura, the fiscal deficit during the current fiscal may swell to 3.6 per cent of the GDP due to revenue shortfall arising from the reduction in corporate tax
10-year yield rises to 6.82% at 12:35 p.m. from yesterday's close of 6.64%; rupee gains 34 paise to trade at 70.98 a dollar
The collections had shot up that year because people regularised their unaccounted income by paying higher levies
With government expenditure under squeeze, many central schemes will come under scrutiny and a few of them may be wound up
Promises simplifying tax laws
The panel projected a boost in compliance and taxing multinationals on a par with domestic companies
Had proposed abolition of dividend distribution tax, securities transaction tax
As a percentage of corporation tax collection, revenue foregone for FY19 has been projected to be the same as the previous year at 16.3 per cent
There were corporate tax cuts only for small businesses announced in the 2016-17 and 2017-18 Budgets
Revenue dept to start pre-Budget consultations from next week
Advance corporation tax collections grew 8 per cent in H1FY17 against 6 per cent last year
Corporation tax collections grew by a mere 2 per cent between April 1 and June 18 year-on-year, indicating a sluggish economic recovery
Collections grew by 10.5% during April-August, 2015-16 year-on-year