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Mayawati raises questions on corporate tax cuts

New Delhi: Bahujan Samaj Party (BSP) chief Mayawati on Friday raised questions over the Finance Minister Nirmala Sitharaman`s bonanza to the corporate sector by slashing tax on companies.

“The Central Government is terming the reduction in corporate tax announced today as historic and claiming that it will end the country`s economic slowdown and crisis. May it be so and the serious crisis that has come over people`s livelihood should end.

“But the basic question is, why did we take such a step earlier which has to be taken back now?” she said in tweets.

The BSP chief`s comments came hours after Sitharaman announced tax cuts and fiscal reliefs saying that domestic corporate tax has been slashed to an effective 25.17 per cent, inclusive of all surcharges and cess. The move would cost the exchequer Rs 1.45 lakh crore.

The changes in the Income Tax Act have been brought through an ordinance.

Sitharaman said manufacturing companies set up after October 1 will have the option to pay 15 per cent tax and effective tax rate for new manufacturing firms will be 17.01 per cent inclusive of surcharge and tax.