ACMA Welcomes Reduction In Corporate Tax

ACMA, the apex body representing India’s auto component manufacturing sector, hailed the measures announced by the Government today. The auto component industry contributes 2.3 percent to India’s GDP. The association stated that the measures would give a big impetus to domestic manufacturing and help attract investments in the private sector. The announcement made on the onset of the festive season is expected to infuse positive sentiments in the market.

Terming the announcement as timely and historic, President ACMA, Deepak Jain, said, “The announcement made by Hon’ble Finance Minister is indeed heartening and reassuring. Reduction in Corporate tax to 22 percent for existing companies, 15 percent for new manufacturing companies and relief on account of MAT are stepped in the right direction to give manufacturing, investments, and economic activity a boost. The measures will also put India in the league of competitive economies in the world.”

Jain also mentioned, “Expansion of scope of CSR expenditure to include incubation centres and public funded institutions will also encourage R&D in automotive industry”.

“We do hope that the Central Government in consultation with the Sates will consider ensuring a uniform GST rate of 18% on all auto components. Currently, 60% of auto components are at 18%, while the rest are at 28%. A lower rate of GST will not only ensure better compliance but also help curb grey operations in the aftermarket”, added Jain