Corporate Tax: Historic for Modi; 'Timed for HowdyModi'

Prime Minister Narendra Modi on Friday hailed as "historic" the cut in corporate tax rates, claiming his government is leaving no stone unturned to make India a better place to do business. But it has not impressed Congress' Rahul Gandhi who took potshots at Modi saying he was amazed at what the Prime Minister is ready to do for a stock market bump ahead of 'HowdyModi' event.

In series of tweets, Modi said step to cut corporate tax is historic and it would give a "great stimulus to Make In India, attract private investment from across the globe, improve the competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians".

He also said the announcements in the last few weeks clearly demonstrated that the government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a USD 5 Trillion economy.

However, Rahul tweeted, "amazing what PM is ready to do for a stock market bump during his #HowdyIndianEconomy jamboree. At + 1.4 Lakh Crore Rs. the Houston event is the world's most expensive event, ever! But, no event can hide the reality of the economic mess “HowdyModi” has driven India into."

Congress said on its official Twitter handle said, "the constant roll-back and erratic decisions taken by this government may give the impression of progress through stock market bumps but will further decrease investor confidence and lead to worsening of the economic situation in the country."

CPI(M) General Secretary Sitaram Yechury also said the announcement "timed for the proposed spectacle of 'HowdyModi' in the US. "Massive concessions to foreign speculators. India is going through its worst phase after independence and all we are getting is a callous government and circuses," he added.

Senior Congress MP Jairam Ramesh also questioned the timing saying it was dictated by 'HowdyModi' event. "PM can now say, 'I have come to Texas promising lower Taxes'. Is this his 'trump card'?" he said.

However, Home Minister and BJP president Amit Shah said rationalisation of corporate tax had been a long pending demand, which is now a reality. "This move will make our corporates globally competitive and our markets much more exciting for potential investors. Modi government is committed to making India a big manufacturing hub and this decision along with previous announcements on relaxing FDI will go a long way in realising this objective," he added.