New Delhi: Asserting that corporate tax reduction is aimed at attracting fresh investment and generating jobs, Finance Minister Nirmala Sitharaman on Monday said “green shoots” are already visible with several foreign as well as domestic firms showing interest to invest.
Amid concerns over slowing growth, Sitharaman assured that the government was “pro-active” in addressing the challenges faced by the economy and also made it clear that tax rate cut was not aimed to benefit certain companies but the entire industry.
The finance minister said “people are approaching” the government for fresh investment which will help in generating more jobs as well as make India a manufacturing hub in the future.
Replying to a debate on Taxation Laws (Amendment Bill) in the Lok Sabha, she said the decision to reduce corporate tax will have an impact of about Rs 1.45 lakh crore on revenue collection, but it will help in bringing more funds within a year’s time.
After the debate, the House passed the Bill, replacing an Ordinance by voice vote.
According to the minister, there was no decrease in direct tax collection and the gross mop-up rose 5 per cent till November this fiscal.
She also stressed that maximum direct tax collection comes in the final quarter of the financial year.
In November, GST collections crossed Rs 1 lakh crore, the third highest-ever monthly mop-up since the new indirect tax regime came into force on July 1, 2017.