New Delhi: The Congress tore into the Centre on Tuesday, after the Parliamentary Committee on Estimates put forward different claims in its report submitted this month on the loss due to corporate tax cuts. The party said that the decision to slash tax had been taken just two days before Prime Minister Narendra Modi’s ‘Howdy Modi’ event on September 22, 2019 in the US. The Congress wanted to know whether such an event was necessary.
At a press conference, Congress spokesperson Gaurav Vallabh said there had been a revenue loss of Rs 1.84 lakh crore in the first two years of corporate tax cut as on September 20, 2019. The government announced the corporate tax cut from a base rate of 30% to 22% for existing firms without exemptions/incentives and from 18% to 15% for new manufacturing units, Vallabh said.
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The announcement was made exactly two days before the ‘Howdy Modi’ event was held on September 22, 2019 in Hudson, the US. In the same month, the Union Finance Minister told the states ag Goa’s GST Council meeting that the Centre did not have money, so it would not pay the GST compensation anymore, Vallabh said.
The government has repeatedly claimed that the corporate tax cut will help increase corporate tax collection. On the contrary, the Parliamentary Committee on Estimates put a different picture in its report submitted on August 8 this year, the Congress spokesperson said.
