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Corporate Tax Cut Will Benefit Poor: CAs

Published: 02nd March 2015 06:00 AM  |   Last Updated: 02nd March 2015 06:00 AM   |  A+A-

TIRUPATI:Reduction of corporate tax and abolition of wealth tax are the two good aspects of the Union Budget, felt Chartered Accountants (CAs) at a panel discussion on the Budget, organised by the Public Relations Society of India (PRSI)’s Tirupati Chapter, here on Sunday.

Welcoming the Budget 2015-16 as a token of appreciation for the poor and the needy, the CAs said that: “Maybe we cannot see the impact of the reduction of corporate tax in the papers, but in reality it is going to help the poor and needy in an indirect way.”

V Bhagya Teja Reddy, a chartered accountant and a budget analyst, said every individual would benefit from the reforms and amendments brought in the Budget 2015-16.

“The reduction of corporate tax will benefit the common man as the country’s economic policies are totally based on corporate companies. A budget in favour of companies or industries can indirectly cause a positive affect but not a negative one,” he explained.

He said that the bullish trend in the stock markets on the day of announcement of the Budget was a rare moment in the country’s economical history. When Union Finance minister Arun Jaitely was briefing the media about the budget, the Sensex and Nifty saw a steady increase,” he said and added that on the Budget day, the stock market had gained 276 points.

As far as the Telugu states were concerned, Sec 32 AD would favour them in the present conditions, observed Teja Reddy. “The new rule says that if any new enterprise or new undertaking is procuring new machinery for starting their units in the backward areas of Andhra Pradesh and Telangana they will be eligible for an investment allowance of 35 per cent,” he said and added that it was done in addition to normal depreciation.

As part of ‘Make in India’, a pet programme of Prime Minister Narendra Modi, some goods like cameras, LED lights, refrigerators, LED and LCD television sets, solar water heaters and micro wave ovens would become cheaper, the CAs pointed out. The experts welcomed the move to increase the rates of cigarettes, liquor, plastic bags and sacks and aerated drinks.

“To curb the consumption of alcohol and tobacco, increasing the prices of liquor and cigarettes is perhaps the best option,” said K Rama Prasad, a manager of Andhra Bank, Tirupati.

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