Chief Economic Advisor KV Subramanian has said that it was necessary to take steps like Deduction in corporate tax to speed up economic activities. He said that the economy has not been growing as expected for the last few quarters. In order to revive it, it was necessary to take a decision like tax deduction. Subramanian said that to achieve the target of five trillion dollar economy by 2025, steps will have to be taken in the field of economic reforms.
The Economic Survey released in July this year set a target of five trillion dollar economy by 2025 and discussed strategic measures to achieve this. During this time special emphasis was laid on investment. Subramanian said that investment is very important in the economy to speed up production. If production increases, income will increase, jobs will be created. This will also increase exports. Because of all this, people will get money in their hands, which will increase their purchasing power and increase demand.
The Chief Economic Advisor said that the corporate world has to pay double tax. First they have to pay tax as a company. After this, tax is to be paid on the savings or dividends on capital. He said that corporate tax has been cut to reduce the burden of this double tax. Significantly, in September this year, the government reduced the corporate tax from 30 percent to 22 percent. Apart from this, it was reduced to 15 percent for new manufacturing companies.