To tackle economic slowdown the government plans on introducing several measures. Indian Government plans more tax cuts in future to boost the market and lure foreign investors. These severe actions are in response to the turbulent economic slowdown faced this year. Prime Minister Narendra Modi and Finance minister Nirmala Sitharaman are actively partaking in the restorative events.
Government’s few Alignments Addressing the Economic State of the Nation
The finance minister, Nirmala Sitharaman, imposed several changes pertaining to the growth of the country. For instance, initially slashing the corporate tax rates to 15% from 30% for new units. Further, initiating a campaign to vend non-profiting public segments. Additionally, Nirmala Sitharaman forced organizations to spend budgeted provisions and pay back the unresolved government bills at the earliest. Moreover, she advised large public sector banks to increase loans to MSMEs to boost their liquidity. Also, she initiated merger of 12 public sector banks to form 4 large banks to provide stability.
These measures nudged a slow minimal economic growth. However, made the Indian corporate tax structure the lowest in Southeast Asia.
New Measures to Enhance Economic Market and Attract Foreign Investors
Modi and Sitharaman are extensively reviewing the existing tax structures including the Long-Term Capital Gains (LTCG), Securities Transaction Tax (STT), and Dividend Distribution Tax (DDT). Consequently, sources from the Finance Ministry and NITI Aayog confirmed the speculations of a series of changes planned in the following weeks. Besides this, Sitharaman is all set to announce these alignments before or in the budget.
Steps to Rationalization
It was also noted that DDT is likely to be brought down first as predictions suggest that DDT hampers major long- term pension to Indian equities. Accordingly, in the past, a task force restructuring Direct tax had urged the abolishment of DDT. Another sector that is likely to be considered by the government is LTCG during the event of tax cuts. Nonetheless, the government is keen on accelerating the disinvestment process, as incomes from these stakes sales will help to revitalize the Indian Economy.