The Madras Chamber of Commerce (MCCI) had recommended that the corporate tax be cut for newer business establishments, it is heartening to note that the Honorable Finance Minister has accepted the recommendation and made an announcement on the same.
Here is a statement from Mr. Ramkumar Ramamoorthy, President, MCCI: “It’s heartening to note that the recommendations of the Madras Chamber of Commerce and Industry (MCCI) for lowering corporate taxes on new investments into India has been accepted by the Honorable Finance Minister and announced this morning. The Chamber had highlighted the current global trade situation and the short window of opportunity available to India to attract investments emanating from the US-China imbroglio. With corporate taxation anywhere between 19 and 24 per cent in neighboring countries like Malaysia, Thailand, Vietnam and Indonesia, the Chamber had made a case for lowering corporate taxes to 20 per cent or less to attract companies that were contemplating to relocate their plants and directing newer investments to neighboring countries. The Chamber welcomes this well-timed move which will not only help in capital formation but also promote employment and exports.”