ITC’s Puri Hails Government’s Move To Slash Corporate Tax, GST Rates For Hotels
Terming the reduction in corporate tax rates and other major reforms as "decisive and bold", ITC Ltd.’s Chairman Sanjiv Puri has said these measures will make India a vibrant and globally competitive manufacturing hub.
He also hailed other measures such as expanding the scope of the corporate social responsibility, saying it would boost research and development in science, technology, engineering and medicine. The move "is path-breaking as it has the potential to spur innovation which is an elixir of growth for the future", a company statement quoted him as saying.
"A far reaching, decisive and bold step has been taken to rejuvenate and infuse a new dimension of growth in the Indian economy that can trigger a virtuous cycle of investment, consumption and employment," the ITC chairman and managing director said.
He also welcomed the government's decision to reduce Goods and Services Tax on hotel room tariffs.
"The move to cut GST rates in the hospitality sector is laudable and will enhance the competitiveness of the tourism sector enabling further growth and providing a significant multiplier to employment generation," Puri said.
On Friday, the government had announced hotels charging Rs 1,001 to Rs 7,500 per night would be levied with 12 percent tax as against the existing 18 percent.
Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 percent from the existing 28 percent. Also, tax on outdoor catering has been reduced to 5 percent from existing
Besides, the government have also been permitted to use their 2 percent CSR spend on incubation, Indian Institutes of Technology, National Institutes of Technology, and national laboratories.
"Measures such as expanding the scope of CSR to boost R&D in science, technology, engineering and medicine is path-breaking as it has the potential to spur innovation which is an elixir of growth for the future," he said adding that "research can be leveraged in the agri-food value chain not only for consumer-centric innovations but also to foster inclusive rural progress".
According to him, investments channelled to the food processing sector and competitive agri-value chains will also provide significant fillip to the agri and rural economy benefiting farmers and local communities.