Congress leader Jairam Ramesh on Friday lauded the move by the Centre of slashing corporate tax for local and domestic manufacturing compes, however, expressed doubts whether this move will bring in investments.
He further added that "the step does nothing to dispel the fear that persists with India Inc."
"A headline-it is afflicted, pc-stricken Modi Sarkar has cut corporate tax rates less than 3 months after a Budget and 4 months before the next one. This is welcome but it is doubtful whether the investment will revive. This does nothing to dispel the fear that pervades in India Inc," he wrote on Twitter.
In another tweet, the Congress leader also dismissed 'Modi's trump card' of cutting country's corporate tax rate, claiming that its timing was dictated by his upcoming event 'HowdyModi, which is scheduled to take place on September 22 in Texas.
"Timing of FM announcement dictated by #HowdyModi event. PM can now say, I have come to Texas promising lower Taxes. Is this his trump card," he said in another tweet.
Bringing in tax cuts and fiscal reliefs through an ordinance, the Central government on Friday slashed domestic corporate tax to an effective 25.17 per cent, inclusive of all surcharges and cess, in a bid to promote growth and investments amid an economic slowdown that would cost the exchequer Rs 1.45 lakh crore.
The effective corporate tax rate earlier was 30 per cent. The Union Finance Minister said the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually.
( With inputs from ANI )