The tax announcements made by FM minister is indeed a welcome measure and will definitely boost the Government’s ambitious Make in India program. Once the corporate tax rate of 22% for local companies and the new tax rate of 15 % on companies formed after October 2019 comes into effect, investments are likely to surge in the manufacturing sector. The lower tax rates show the government’s commitment towards reigniting the economy’s growth engines and augurs well for the broad economy as well as entrepreneurs. Further, the boost to the manufacturing ecosystem will not only generate jobs and lead to wealth creation but will also have cascading impact on other sectors including real estate and is likely to push demand for warehousing and commercial real estate space.
Also read: Slashing Corporate Tax a Milestone Effort to Kick Start the Economy: Shishir Baijal, CMD, Knight Frank India