BJP hails move to make ‘corporates globally competitive’; Opposition questions timing

The BJP, on Friday, welcomed the Centre’s decision to cut the corporate tax, but the Opposition’s reaction was mixed. While the Congress connected the tax cut with Prime Minister Narendra Modi’s Houston event ‘Howdy, Modi’, the Left parties said “corporate-communal nexus” is imposing greater miseries on the people.

BJP President and Union Home Minister 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,” he said on Twitter. “The 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,” Shah said.

Former Congress president Rahul Gandhi 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,” he said.

Senior Congress leader and former Minister Jairam Ramesh welcomed the decision. “A 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. Timing of FM announcement dictated by #HowdyModi event. PM can now say, “I have come to Texas promising lower taxes”. Is this his ‘trump card?” he asked.

The Congress, later issued an official statement that the decision is yet another panic reaction to tide over “choppy Sensex index” instead of laying down sound economic vision and fiscal policy for the country. “Why are the Prime Minister and Finance Minister making a mockery of the entire Budget exercise entrusted to Parliament by the Constitution? Almost, the entire budget proposals presented by FM and approved by Parliament have either been rejected or amended or rolled back over the last one month. Does it not mean a near total rejection of its own Budget and Budgetary proposals by this Government reflecting the greenhorn attitude to tackling economic crisis?” asked Congress’s chief spokesman Randeep Singh Surjewala.

The CPI (M) Polit Bureau, in a statement, said the Ordinance gave huge concessions to the corporates and super-rich to the tune of ₹1.45 lakh crore. “This comes over and above the ₹70,000 crore of concessions to the realty and exports sectors recently. The misappropriation of the reserves of the Reserve Bank of India to the tune of ₹1.76 lakh crore is now being transferred to the corporates instead of it being used for increasing public investments that will generate employment and increase people’s purchasing power,” the statement said.

The party said in a situation of alarmingly rising unemployment, lay offs, retrenchment and fall in real incomes of the working people, none of these measures can help improve people’s livelihood or reviving the economy. “What is needed is large doses of public investment to create employment and increase people’s purchasing power. The government is pursuing the exact opposite which is nothing else but loot of Indian money for private corporate benefit and speculative profit,” it added.