Is This His 'Trump Card'?: Jairam Ramesh's Taunt After Govt Cuts Corporate Tax

Finance Minister Nirmala Sitharaman today announced slashing of effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies to boost economic growth rate from a six-year low by incentivising investments to help create jobs.

Former Union Minister and senior Congress leader Jairam Ramesh. FILE PIC/AFP.

New Delhi: Congress leader Jairam Ramesh on Friday welcomed the reduction in corporate tax rate but said he was apprehensive about whether the step will revive investment. The government's announcement he said does nothing to dispel the fear that pervades India Inc. "A headline-itis afflicted, panic-stricken Modi Sarkar has cut corporate tax rates less than 3 months after a Budget and 4 months before the next one. This is welcome but it is doubtful whether investment will revive. This does nothing to dispel fear that pervades in India Inc'," he said on Twitter. He also questioned the timing of the cut which comes just ahead of PM Narendra Modi's 'Howdy, Modi event in which US President Donald Trump will also participate.

A headline-itis afflicted, panic-stricken Modi Sarkar has cut corporate tax rates less than 3 months after a Budget and 4 months before the next one. This is welcome but it is doubtful whether investment will revive. This does nothing to dispel fear that pervades in India Inc.

— Jairam Ramesh (@Jairam_Ramesh) September 20, 2019

Timing of FM announcement dictated by #HowdyModi event. PM can now say, "I have come to Texas promising lower Taxes". Is this his 'trump card'?

— Jairam Ramesh (@Jairam_Ramesh) September 20, 2019

Finance Minister Nirmala Sitharaman today announced slashing of effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies to boost economic growth rate from a six-year low by incentivising investments to help create jobs. In another decision, the enhanced surcharge provided in Finance Act 2019 shall not be applicable to capital gains arising on sale of equity shares in a company or a unit of equity oriented business trust that is liable to pay securities transaction tax (STT).