- By Aalok Sensharma
- Fri, 20 Sep 2019 01:07 PM (IST)
- Source:JND
New Delhi | Jagran Business Desk: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday welcomed the government’s decision to slash effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic firms and said that the move will ‘help revive the economy’.
Speaking at the India Today Conclave in New Delhi, Das said that this is ‘bold move’ by the government.
“This is a bold and welcome decision. During Arun Jaitley’s tenure as FM (Finance Minister), the corporate tax was reduced from 30 to 25 per cent. This was one of the hurdles, and the measures will help revive the economy,” said the RBI Governor.
“The growth has slowed down across the globe. The second quarter in almost all advanced economies has shown signs of deacceleration. Almost all central banks across the globe are in an accommodative mode and are cutting interest rates,” Das said while replying to a question on the economic slowdown.
Das also defended the government’s move to cut repo rates and said that more can be expected depending on the incoming data.
“We can’t go back to Fed like rates. We don’t know what a real effective interest rate will be like, because the law of the land mandates the RBI to ensure price stability. But how much lower we can go down depends upon the data we gather on the economy,” he said.
India can’t be compared with advanced economies. I want to assure that we are not targeting a 2 per cent growth. In India, inflation target is 2 per cent, while in advanced economies, inflation is almost zero,” he added.
Finance Minister Nirmala Sitharaman on Friday announced a slew of measures to revive the economy including the cut in corporate taxes. Sitharaman said that these moves are being done to promote investment and growth.
“We today propose to slash the corporate tax rates for domestic companies and for new domestic manufacturing companies,” said the Finance Minister.