Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Lowering corporate tax rate is good but not enough -Renu Kohli

Lowering corporate tax rate is good but not enough -Renu Kohli

Share this article Share this article
published Published on Oct 8, 2019   modified Modified on Oct 8, 2019
-The Telegraph

While the corporate tax cuts are a long-term positive, this does not dismiss the case for near-term consumption support

The government relented on fiscal discipline to steeply reduce corporate taxes on September 20; the lowest is now 17 per cent for new manufacturing units. The stock market soared, seeing earnings grow after successive downgrades for nearly nine years — about the same time as the investment shortfall that lower taxes intend to reverse. Sentiments have lifted and the expected positive impact upon medium-term growth has tempered pessimism; investors had begun to speculate if India would grow at 5-6 per cent henceforth. Lower corporate taxes have been largely welcomed. However, many argue fiscal support should have targeted the consumption shortfall: if buyers’ incomes and spending are depressed, this will constrain investment demand; therefore, lowering income taxes might have been the better policy choice.

These arguments are not invalid. It is true that business tax incentives will take time to reflect in higher investment and growth, require complementary changes, and are not independent of demand conditions, within or outside. Nonetheless, these are in the right direction and, indeed, should have come a few years ago, around 2015-16, so as to exploit the oil-revenues’ windfall and enable firms to pick up the Chinese manufacturing slack.

Please click here to read more.

The Telegraph, 1 October, 2019, https://www.telegraphindia.com/opinion/lowering-corporate-tax-rate-is-good-but-not-enough/cid/1708632?ref=opinion_opinion-page&fbclid=IwAR1jMmePx0pwPrrovW-x6KDWXiBM


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close