The finance ministry lowered the corporate tax rate to 22% for firms that do not avail tax incentives. New manufacturing companies will have to pay an even lower corporate tax rate of 15% Listed companies announcing share buybacks before 5 July to be exempt from buyback tax. Today's Traveller asked Varun Kapur, Executive Director, Travel Food Services about his thoughts on the move.
Kapur said, ''The recent announcement of relaxing corporate tax rate is a bold move by the government which will accelerate industrial activity and bolster investment across all sectors. It is bound to increase capital formation in the country, leading to business expansion and job creation. This will offer a two-fold benefit to the end consumer: Firstly, it will allow companies such as ourselves to accelerate expansion plans coupled with job creation. Secondly, The trickle-down effect from the increased consumer confidence and spending power of the Indian consumer, will provide an impetus to growth. The vigour that will be introduced with these measures will kick start the economy and put it back on the rapid trajectory that we as a country have got accustomed to.''