Terming revised corporate tax rates as competitive, the Confederation of Indian Industry (CII) President Vikram Kirloskar has said that impact of corporate tax rate cut will be visible in the next two years. He also emphasized that the government listened to the industry ‘word by word’ on lowering rates and added that the industry pushed the government a lot for reducing the rates.
Kirloskar further said that the slowdown in the economy was a combination of several factors and in the last 5-6 years, it has been pretty good. Besides, he noted that the slowdown is cyclical as well as structural, both and expressed need to do some restructuring to get back to that same track.
Meanwhile, in September, the government has reduced effective corporate tax to 22 per cent for domestic companies. Also, companies opting for 22 per cent income tax slab would not have to pay Minimum Alternate Tax (MAT) and new domestic manufacturing companies incorporated after October 1, can pay income tax at a rate of 15 per cent without any incentives.