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India’s government slashed corporate taxes giving a surprise $20.5 billion break at reviving private investments and lifting growth from a six-year low that has caused job losses and fueled discontent in the countryside.
Finance Minister Nirmala Sitharaman had told reporters the effective corporate tax rate would be lowered from 30% to around 25%, which said it would put it on a par with Asian peers.
Starting from the current fiscal year, any domestic company has the “option to pay income tax at the rate of 22%” as long as they do not seek any special tax incentives, the minister said in western city of Panaji where officials are also considering lowering sales tax on 20 to 25 products.
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