The US' corporate sector has lauded the Indian government for substantially slashing the income tax rate to 25.17 per cent, saying the move will reverse the economic slowdown and allow global companies a "good option" for growing their manufacturing base in the country.
The government on Friday slashed the income tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help create jobs.
Finance Minister Nirmala Sitharaman said the reduction in tax rates was done by promulgating an ordinance to an amendment to the Income Tax Act.
"We laud the Government for addressing our longstanding demand for lowering the corporate tax rates. The move will make Indian companies globally competitive and allow global companies a good option for growing their manufacturing base in country," Mukesh Aghi, president of US India Strategic and Partnership Forum (USISPF) told PTI.