Following the announcement on corporate tax reductions, Minister of Communications and Electronics & Information Technology Ravi Shankar Prasad held a meeting with senior officials of the two ministries, asking them to follow-up on the Finance Ministry’s decision to ensure that the move translates into investments in the electronics and communications sector.
With an aim to revive investments, particularly in the manufacturing sector, Minister of Finance Nirmala Sitharaman Friday announced reduction of effective corporate tax rate to 25.17 per cent. For new domestic manufacturing companies incorporated after October 1, income-tax at a rate of 15 per cent without any incentives will be applicable.
“We want India to be a hub of telecom equipment manufacturing and component manufacturing. Now, there is a robust investor-friendly taxation regime and the duty-regime has also been properly restructured. I have instructed my department officials to follow up on this action and I have myself reached out to many of leaders of this sector,” Prasad told reporters.