New Delhi: In a bid to give a boost to the sluggish economy, Finance Minister Nirmala Sitharaman on Friday lowered corporate tax rate on domestic companies.
The new manufacturing firms will have tax rate cuts also. The Sensex surged over 900 points and Nifty climbing above 10,900 mark immediately after the announcement by the government.
At a press briefing in Goa, Sitharaman said the new effective tax rate will be reduced from 30 per cent to 25.2 per cent. This change will be made through an ordinance to amend the Income Tax Act, 1961, she added.
The economic slowdown has hit the automobile sector very hard with a number of companies temporarily stopping production and some have cut jobs. The manufacturing sector and is one of the biggest contributors to the Gross Domestic Product.