Society of Indian Automobile Manufacturers (SIAM) has welcomed the bold announcements made by Indian Finance Minister Nirmala Sitharaman on September 20, 2019. The new changes include reduction of the corporate tax rate to 22 percent and No Minimum Alternate Tax for companies not availing incentives under Income Tax Act.
SIAM President Rajan Wadhera has welcomed the reduction of corporate tax to 15 percent for new companies making fresh investments from October 1, 2019. “It will support investment and also FDI in the auto sector. This is expected to give a big boost to Make in India for automobile industry. Expansion of scope of CSR expenditure to include incubation centers and R&D activities will also help with R&D expenditures in automobile sector,” he said.
According to SIAM, all the fiscal measures are expected to uplift market sentiments and improve demand for automobiles.
Wadhera emphasized that these are indeed landmark announcements and would certainly help in reviving growth in the Indian Economy. He truly appreciated the leadership of Finance Minister in making India globally competitive in terms of taxation rates. These set of major tax reforms are a clear indicator of the Government of India’s commitment to improving Business environment to give a definite boost to economic growth, he further said.