New Delhi, Dec. 13 -- Corporate tax rate cuts are necessary but not sufficient to stimulate investments, for which the country needs more reforms, chief economic adviser (CEA) Krishnamurthy Subramanian said on Tuesday, 10 December.
The CEA said that corporate tax cuts were announced to make India attractive for investors in the face of competition from Thailand, Vietnam and China. "Tax rate cuts are necessary, but are not necessarily sufficient conditions for attracting investments because investors look at after-tax returns," Subramanian said while arguing for more investments.
The government in September announced a lower 22% corporate tax rate for domestic companies that do not avail of any tax breaks and a 15% rate for new manufacturi...