American credit rating agency Moody’s stated that the Indian government’s Tax Cut move would give a boost to net income of Indian companies.
American credit rating agency stated that the Indian government’s tax cut move would give a boost to net income of Indian companies.
Talking on the move to the media, Moody’s Investors Service Senior Vice President Vikas Halan said, that eventual impact of the corporate tax cut on credit profiles of Indian corporates will hinge on whether they utilise the surplus earnings for reinvestment in the business, debt reduction or high shareholder returns.
The company also believes that the slash in corporate tax is credit positive for companies for the reason that it will enable businesses to produce higher post-tax incomes.
The government of India on 20th of September slashed the Income Tax rate for companies by almost 10 percentage points to 25.17% and offered a lower rate to 15.01 per cent for new manufacturing firms to lift economic progress.