The Congress lashed out at the Government over the move of bringing down the Corporate Tax rate on Friday saying “constant rollbacks” may give an “impression of progress through stock market bumps” but these will lead to worsening of the economic situation and are unlikely to revive investments. It also said it was done with the ‘Howdy Modi’ event in mind.
Former Congress president Rahul Gandhi on Friday said he is amazed at what Prime Minister Narendra Modi is ready to do for a stock market bump ahead of his ‘HowdyModi’ event in Houston, which he termed as the world’s most expensive event ever. He said the Government was pumping LIC’s money in loss-making companies.
Congress said the government’s “constant rollbacks” may give an “impression of progress through stock market bumps” but these will lead to worsening of the economic situation and are unlikely to revive investments. Questioning the timing of the corporate tax cut announcement, the opposition party alleged that it has been dictated by Prime Minister Narendra Modi’s ‘HowdyModi’ event in the United States.
However, former Union Minister Jairam Ramesh welcomed the reduction in corporate tax rates but expressed doubts on whether the step will revive investment. But like Rahul, he also attributed the timing of the announcement to be in view of the US event.
Asking whether it was the prime minister’s “trump card”, Ramesh said the government’s move does nothing to dispel the fear that pervades India Inc. “A headline-itis afflicted, panic-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 investment will revive. This does nothing to dispel fear that pervades in India Inc,” Ramesh said on Twitter.
Terming ‘HowdyModi’ the “world’s most expensive event ever”, Rahul Gandhi said he is “amazed” at what Prime Minister Modi is ready to do for a stock market bump ahead of the event in Houston.
“Amazing what PM is ready to do for a stock market bump during his Howdy Indian Economy 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,” Rahul Gandhi said on Twitter.
Another Congress leader, Abhishek Singhvi, said drastic reduction in corporate tax rate is good but the arbitrage between highest effective individual tax rate of 42 per cent and higher effective corporate rate of 25 per cent begins to look absurd.
“Good: GOI, FM reduce corporate tax rate drastically. But arbitrage between highest individual tax rate (42% effective) and highest effective corporate rate of 25% begins to look even more absurd. If animal instincts are required for growth, I predict 35% Individual rate yields more than 42% !” he tweeted.