Commerce and industry minister Piyush Goyal on Friday said the announcement of the corporate tax rate cut for companies by almost 10 percentage points to 25.17 per cent will give necessary fillip to the economy.
"Finance Minister's announcement on slashing corporate tax will give necessary fillip to the economy which we've been hoping for. We have had a series of measures and today's measures are the largest," Goyal said at an event here.
In a major fiscal booster, the government on Friday slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.
Making the announcement, Finance Minister Nirmala Sitharaman the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually.
The forgoing in revenue through the measures will benefit corporates, Goyal said.
The minister is hopeful that businesses will be able to take benefit of these measures to spur growth.
These measures will help in making India a better investment destination, he added.
The announcement on tax will help companies like Coal India, Infosys and Wipro, he said.