The BJP on Friday projected the corporate tax cut as a big-bang reform of the second Narendra Modi government, hoping the move would boost growth and pep up the party’s committed middle-class vote base.
Party leaders hoped the move would help the BJP’s effort to return to power with a big mandate in financial capital Mumbai. Maharashtra votes next month. While ground reports suggest the BJP-Shiv Sena coalition is set to be re-elected, party leaders said, there is lack of enthusiasm among the people because of the economic slowdown.
Apart from Maharashtra, two other BJP-ruled states — Haryana and Jharkhand — are also going to the polls. The schedule for Maharashtra and Haryana is likely to be announced on Saturday.
Prime Minister Narendra Modi led the celebration, with the tweet: “The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians.”
Modi, who is promising a $5 trillion economy by 2024, said his government was leaving no stone unturned to improve opportunities for all sections of society and increase prosperity.
In its second term, the Modi government has been aiming to surprise people with big-bang announcements. The decision to cut corporate tax was projected as another example of bold decision-making, after the decision to scrap the special status of Jammu and Kashmir under Article 370.
“Modi government is committed to making India a big manufacturing hub and this decision, along with previous announcements on relaxing FDI, will go a long way in realising this objective. I congratulate PM @narendramodi and FM @nsitharaman for announcing these bold measures,” home minister and BJP chief Amit Shah tweeted.
Shah said rationalisation of corporate tax was a long pending demand and would make Indian markets more exciting for investors.
“After corporate tax, we also expect the government will give relief to the middle-class by cutting personal tax that will put more money in the pockets of the people to spend and in turn spur growth,” one BJP leader said. “Along with Article 370, the corporate tax cut move would pave the way for the party’s big victories in all the three states,” the leader added.
Road transport and highways minister Nitin Gadkari said: “I welcome and appreciate the move by the Finance Minister @nsitharaman. It will give further boost to the #MSME sector.”
The economic wing of the RSS, the Swadeshi Jagran Manch, called for an “alternate tax” on e-commerce portals such as Amazon to meet the revenue shortfall.
“The government has been forced into tax competitiveness due to global factors but we have fears over the revenue shortfall as a result of this… There are many companies like e-commerce ones like Amazon who are not paying taxes. The government should impose alternate tax on them,” Manch chief Ashwani Mahajan said.
