September 29, 2019

Hard road beyond corporate tax cut

In this article for The New Indian ExpressShankkar Aiyar analyses the recent corporate tax rate cut and the need for continuous reforms. 




"The brutal fact about a tax cut is that the benefit depends on realised income growth. Job creation and investments depend on expectations of demand growth. The helicopter economics of the political move has critics suggesting alternative modes of stimulating the economy. It is argued that the stimulus of Rs 1.45 lakh crore could have had a direct impact on demand and, therefore, investments if money was transferred into the hands of the consumer."


On the need for continuous reforms, 


"The government needs a new blue book of processes and protocols on expenditure. The aspiration for the $ 5 trillion economy demands not just milestones but continuous reforms."


Read the complete article here.

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