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Published on 23/09/2019 5:26:11 PM | Source: Kotak Mutual Fund

Views On Govt of India`s announcement on corporate tax rate - Mr. Harsha Upadhyaya

Posted in Expert Views| #Expert Views #Kotak Mahindra Mutual Fund

Below is the Views On Govt of India's announcement on corporate tax rate by Harsha Upadhyaya, CIO (Equity), Kotak Mutual Fund

 

“The decision to lower corporate taxes meaningfully is a key structural measure to support India's growth outlook. One of the key objectives of the sharp cut in corporate tax rates is to make India globally competitive. This step significantly boosts medium-term investment potential in the economy. The focus of fiscal stimulus is capex-driven rather than consumption-driven and thus poses limited risks to macro stability. Even if it is difficult for government to remain within the FRBM mandated fiscal target in FY20, a combination of expected tax buoyancy and higher proceeds from divestment due to improved valuations should enable it to come back on fiscal roadmap over the medium term. Any slip in short term should be seen as a fiscal price to spur growth in domestic economy.” 

 

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