Corporate tax cut won't do anything to revive struggling economy: TMC MP Mahua Moitra

Trinamool Congress (TMC) MP Mahua Moitra on Monday said that the Central government's proposed corporate tax cut will only help the profitable become more profitable and will not do anything to revive the struggling economy.

"The (corporate) tax cut that you have proposed only helps the profitable become more profitable. It does not do anything to revive a very large part of this economy which is struggling," Moitra said in the Lok Sabha.

The TMC MP said if that bill was to help everyone, it should apply to all entities.

"If this bill was really to help everybody, especially micro, small and medium enterprises sector, then the tax rate reduction should apply to all entities," she said.

"It should not apply to just the companies, it should apply to limited liability partnerships, partnership firms and other non-corporate entities as well," Moitra added.

Moving the Taxation Laws (Amendment) Bill, 2019, for passage in the Lower House of the Parliament, Finance Minister Nirmala Sitharaman said the additional fiscal measures were taken to stimulate growth and boost job growth. The bill seeks to replace ordinance by the government.

Earlier today, Sitharaman said that the government's move to reduce corporate tax has had a "positive impact" and companies want to get out of China due to trade war with the US.