NEW DELHI: India cut 30 to 25 percent tax rates to urge faster growth in Asia’s third biggest economy.
Finance Minister, Arun Jaitley, unveiled his government’s first full budget after storming to power at last year’s general elections on a pledge to reform and revive the economy.
In a bid to win over investors disappointed by last year’s interim budget, Jaitley said the corporate rate would be cut from 30 to 25 percent over four years starting next year.
The minister pledged to make fairer a regime long criticized as being aggressive, arbitrary and holding back investment.
The moves are aimed at encouraging foreign companies to set up shop in India, and attracting overseas investment for roads, railways, ports, power plants and other dilapidated infrastructure.
“This will lead to a higher level of investment, higher level of growth and more jobs,” Jaitley told the parliament.
India’s tax authorities have locked horns with a string of international companies including Royal Dutch Shell and IBM.
British mobile giant Vodafone is currently embroiled in a bitter, $2.4-billion battle with authorities, while Finnish company Nokia had a plant in India seized over a tax dispute.
