LUCKNOW: Chief Minister Yogi Adityanath on Sunday backed the Centre's decision to cut corporate tax rates, saying that this will pave the way for India becoming a $ 5 trillion economy, while Uttar Pradesh will be a $ 1 trillion economy by 2024.
"The decision to slash corporate tax rates will pave the way for India to become a $ 5 trillion economy and Uttar Pradesh to be a $ 1 trillion economy by 2024," Adityanath told media persons.
"The relief that has been given to the corporate sector in terms of tax rebates by the Union Government is a historic decision. Earlier the companies had to pay 30 per cent corporate tax. It has now been reduced to 22 per cent. This means that companies will have more money and greater investment opportunities, leading to employment creation and higher growth," he said.
Adityanath further pointed out that the trade sanctions imposed by the US have led to higher custom tariffs on Chinese goods, which have increased their prices. "Around 80 per cent American supply chain companies and 67 per cent European companies have been displaced from China," he said.
He said that because of the high labour cost in China, many companies are moving into different countries. Thus, the investment that used to go majorly into China is now going to be directed towards India.
The Uttar Pradesh Chief Minister also lauded the Union Government's move to merge public sector banks (PSBs). He said the Central government has taken important decisions on the merger of banks. The number of banks in the country was 27 in 2017, which is going to be 12 after the merger decision.
Adityanath said that the cuts announced on tax rates will not have an impact on revenue collection but will give a boost to the gross domestic product (GDP), thus giving greater stimulus to the economy.
"The financial sector in Uttar Pradesh will get a major boost because of this decision of the Central government. There will be no negative impact on the revenue collection in the state," he said.
He also pointed out that Uttar Pradesh will have the opportunity to leverage growth because of tax rate cuts and the prevailing business environment.
"We have made 21 sectoral policies in Uttar Pradesh to boost the economy and make the state a preferred investment destination," said Chief Minister Yogi.
"Uttar Pradesh can reap major benefits from the tax rate cuts and the trade war between the USA and China. We have a good land bank and connectivity. Hence, Uttar Pradesh can make the most of opportunities for growth," he said.