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The Finance Minister today announced new tax reforms in an effort to revive growth in the Indian economy
The announcements made pertaining to the automotive sector included the reduction of corporate tax rate to 22 percent from 30 percent and No Minimum Alternate Tax for companies not availing incentives under Income Tax Act.
Additionally, the reduction of corporate tax to 15 percent from 25 percent for new companies making fresh investments from 1st October 2019, will support investment and FDI in the automotive sector. This is expected to give a big boost for the automobile industry. Expansion of the scope of CSR (corporate social responsibility) expenditure to include incubation centres and R&D activities would also help with expenditure in the automobile sector as well as encourage car companies to work with colleges like IIT to develop new technologies and hire young talent.
SIAM President, Mr.Rajan Wadhera was very positive about the announcements made today by the Finance Minister, “All these set-off fiscal measures are expected to uplift market sentiments and improve demand for automobiles,” Rajan Wadhera said.
Words by Karan Singh