Bill introduced in the Lok Sabha, replacing the corporate tax mandate of 30 percent to 22 percent

The bill was submitted to Finance Minister Sitaram before the opposition's adjournment on Maharashtra delayed the Lok Sabha proceedings.

The IFSC Authority Bill, 2019 for the creation of a consolidated financial regulator for IFSC was also introduced.

(PTI) New Delhi, Ta. November 25, 2019, Monday

The Taxation Laws (Amendment) Bill, 2019, which was issued to reduce the corporate tax, was introduced in the Lok Sabha today to increase the rate of economic growth in the diluted economy. The bill was presented by Union Finance Minister Nirmala Sitharaman.

The Taxation Laws (Amendment) Ordinance, issued on September 20, 2019, will take the annual Taxation Laws (Amendment) Bill, 2019, to reduce corporate tax from 30 percent to 22 percent.

The bill was introduced to Finance Minister Sitaram before the opposition's adjournment on the ongoing political developments in Maharashtra was postponed.

The International Financial Services Center (IFSC) Authority Bill, 2019, was also introduced to create a consolidated financial regulator for the IFSC amid opposition parties.

It is worth mentioning that on September 20, Sitaram announced to reduce corporate tax from 30 percent to 22 percent. In addition, the tax for new manufacturing companies was announced to be reduced from 25% to 15%.

The corporate tax has been reduced with the aim of raising FDI, bringing out the recessionary economy. When the announcement was made on September 20, as the session of Parliament was not running, the government issued a mandate and started implementing corporate tax cuts. It is pertinent to mention here that the President of India has the power to amend the Income Tax Act, 1961 by ordering an order under section 123 (1) of the Constitution.