Economics
India Surprises With $20 Billion Tax Cut Stimulus; Stocks Soar
- Corporate tax rate reduced to one of the lowest in Asia
- Stocks jump the most in a decade, rupee rallies, bonds drop
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India’s government escalated efforts to repair economic growth with a surprise $20 billion tax cut, taking the rate for companies to one of the lowest in Asia.
Domestic companies will pay 22% tax on their income from April 1, 2019, versus 30% previously, Finance Minister Nirmala Sitharaman said Friday. The effective rate, including all additional levies, will be 25.2% and applicable on companies that aren’t availing any incentives or exemptions.