Early Diwali! India Inc cheers decision on corporate tax rate

New Delhi, Sep 20: The government's decision to slash corporate tax rate for companies will boost investors sentiments, encourage manufacturing and awaken animal spirits in the economy, as per India inc.

CII President Vikram Kirloskar said the cut in corporate tax from 30 per cent to 22 per cent without exemptions has been a long standing demand of industry and is an unprecedented and bold move by the government.

"The Finance Minister's mega corporate tax stimulus is a major move to boost investors sentiments, encourage manufacturing and awaken animal spirits in the economy," he said in a statement. This move also indicates that the government is adopting a tax stimulus route rather than using higher government spending route to help the recovery process of the economy, Kirloskar added.