Chief Minister Biplab Kumar Deb on Tuesday hailed the Centre's decision to slash corporate tax rates and said the decision would attract huge foreign investments into the country.
Addressing the media here during a press conference on the new economic policy of the union government, Deb said: "Through the reduction of corporate tax, we can expect to attract a large quantity of foreign investment especially from China and USA and materialize the dream to take the Indian economy to $ 5 trillion."
The Tripura chief minister thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitaraman for the bold step towards reviving the Indian economy.
Bringing in tax cuts and fiscal reliefs through an ordinance, the government on September 20 slashed domestic corporate tax to an effective 25.17 per cent, inclusive of all surcharges and cess, in a bid to promote growth and investments amid an economic slowdown that would cost the exchequer Rs 1.45 lakh crore.
The effective tax rate for the existing companies will be 25.17 per cent inclusive of surcharge and cess. Also, such companies will not be required to pay Minimum Alternate Tax (MAT).
The effective corporate tax rate earlier was 30 per cent.
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