Finance Minister Nirmala Sitharaman has said that the government’s decision to cut the corporate tax rate for domestic companies, including new manufacturers, was taken in view of US-China trade war.
Replying to the debate on the Taxation Laws (Amendment) Bill, 2019 in the Lok Sabha yesterday, she said the move will help attract fresh investments, stimulate growth and generate employment.
Later, the House passed the bill. It will replace an ordinance promulgated in this regard. The bill provides domestic companies with an option to pay tax at the rate of 22 per cent, provided that they do not claim certain deductions under the Income Tax Act.