AGARTALA, Sep 21 (TIWN): The national Congress has slammed the Modi Govt for relaxing corporate taxes at 15% and 22% whereas middle class people to give 30 %.

“Can PM and FM tell the Nation as to where will the resources to compensate the revenue loss of Rs.1,45,000 crore come from? Will they come by taxing the common man and the farmer in shape of taxes on petrol, diesel, electricity and other household products?” Randeep Singh Surjewala asked the Modi Govt. He said, the decision was taken to save the Sensex-index. 

The statement from the national Congress came after in a major bonanza for corporates as part of measures to promote growth and investment, Finance Minister Nirmala Sitharaman on Friday announced to slash corporate tax rate to 22 per cent for domestic companies and 15 per cent for new domestic manufacturing companies, besides other fiscal reliefs.

He said the Prime Minister and Finance Minister must understand that stimuli do not help beyond a certain level. "What the economy requires is sound leadership, mature thinking, financial prudence, fiscal discipline and honesty of purpose". 

"The looming economic crisis is fast turning into a BJP-made economic anarchy," he said, adding the Finance Minister and her colleagues are beset with bankruptcy of ideas.

"Economic mismanagement has caused a shadow upon the economic stability and direction of the country".  Surjewala alleged the government is in the mode of "one step forward, three steps backward". The net result is a falling GDP, failing exports, shutting down of industries and businesses and loss of millions of jobs.

 Sitharaman said the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually.  The move puts India’s tax rate on par with Asian peers and will boost efforts to attract investments as companies look for alternative destinations to sidestep supply chain disruptions from the U.S.-China trade war.  RBI Governor Shaktikanta Das welcomed the government announcement, calling it a “bold move.'’ Domestic investor wealth soared by Rs 2.11 lakh crore in morning trade on Friday.

Business Times report says, "India's upper middle class has been waiting for a tax break for a long time, and Finance Minister Nirmala Sitharaman left them disappointed in Budget 2019 too. She has ignored key demands of the common man as well as industry bodies, be it raising the tax exemption threshold from the current Rs 2.50 lakh or revising the tax slabs or increasing the maximum deduction limit under Section 80C from Rs 1.5 lakh. Instead, the higher income groups are staring at a higher tax outgo".