GUWAHATI: Assam chief minister Sarbananda Sonowal has said that the corporate tax rate reduction by the Centre was a “historic move” which would help boost industrialisation and woo more investments to the Northeast.
Addressing the media here on Wednesday evening, Sonowal lauded Prime Minister Narendra Modi and finance minister Nirmala Sitharaman for the announcement last Friday to reduce the base corporate tax rate to 22 per cent from 30 per cent as part of stimulus measures to reverse the economic slowdown.
“The rebate in corporate tax would ally all apprehensions in regard to the Make in India initiative and encourage frontline corporate houses and global investors to set up manufacturing units in the country and make India a manufacturing hub,” Sonowal said.
“Through the Act Eat Policy, the Northeastern states can take the opportunity to strengthen their economy and establish strong connections with countries in South East Asia and neighbouring countries like Bangladesh, Bhutan and Nepal (BBN),” he said.
The chief minister said that two direct flights from Guwahati to Dhaka and Bangkok have started operations and similar air links with other ASEAN countries were on the anvil.
Sonowal lauded the “historic” move which he said were in line with the Prime Minister’s objective to transform India into a 5 trillion US$ economy by the year 2024.
The corporate tax cut, he said would also boost exports, increase income and domestic savings, generate employment and pave way for entrepreneurial ventures.
“This augurs well for the existing domestic manufacturing units as well new units. As it is, the Advantage Assam summit in 2018 has paved way for 240 pacts and investment proposals to the tune of Rs 80,000 crore of which an investment of Rs 52,000 crore has already been made across sectors,” the chief minister said.
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