FM Announces Corporate Tax Cut & Desi Twitter Responds With Sensex Memes!

The country has been experiencing slow economic growth and an increase in unemployment. Hence to provide fiscal relief for companies to boost investments, generate employment, the Union Minister for Finance & Corporate Affairs Nirmala Sitaraman announced corporate tax cut for domestic and new domestic manufacturing companies.

According to The Hindu, the effective tax rate for domestic corporates, inclusive of surcharges, will fall from 34.94% to 25.17% if they stop availing any other tax sops. For new manufacturing firms set up after October 1, 2019, and commencing operations by March 31, 2023, the effective tax rate will fall from 29.1% to 17%.

It was early Diwali for Indian companies as she slashed the tax rate for corporates. People went gaga over the tax relief and flooded Twitter with interesting memes.

https://twitter.com/sehgal_tweets/status/1174957214668165122?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1174957214668165122&ref_url=https%3A%2F%2Fwww.latestly.com%2Fsocial-viral%2Ffunny-sensex-memes-take-over-twitter-after-markets-zoom-following-nirmala-sitharamans-corporate-tax-cut-announcement-1209847.html

https://twitter.com/Jk42154007/status/1174935454363217920?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1174935454363217920&ref_url=https%3A%2F%2Fwww.latestly.com%2Fsocial-viral%2Ffunny-sensex-memes-take-over-twitter-after-markets-zoom-following-nirmala-sitharamans-corporate-tax-cut-announcement-1209847.html

Some even criticised the move:

https://twitter.com/iChandrusekar/status/1175282066725822465

For the uninitiated, corporate tax or company tax is a direct tax imposed by the central government on the net income of the company wherein both public and private companies (registered under the Companies Act 1956) are liable to pay taxes to the government.

What do you think of this sudden bonanza given by the government?

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