Corporate tax cut to boost manufacturing; unutilised capacity a concern

Slashing the corporation tax rate to 22 per cent and offering even lower rate of 15 per cent to manufacturers, which register from October 1, are likely to bring new investments into the country’s manufacturing sector.

Industry stakeholders said the lower tax payable would now mean more liquidity in the books of companies, which should reflect in higher investment.  Moreover, attracting foreign direct investment (FDIs) in manufacturing will become  easier now.

Electronic manufacturers like Whirlpool India, Jaina Group and Super Plastronics (SPPL) see the tax cuts as beneficial.  While Whirlpool has planned to invest Rs 590 crore over the next four years,