Niranjan Hiranandani, the co-founder and managing director of the Hiranandani Group, welcomed the government move to reduce the corporate tax rate for domestic companies, calling it “unbelievable”.

Hiranandani compared the government’s move to lower the corporate tax as “chemotherapy for cancer that was being treated with Crocin”. The business tycoon also said that the move will help arrest the downslide in the Indian economy before saying that government should not stop there.

“We also need to take care of the demand side…,” Hiranandani said. “This announcement [to slash taxes] will take care of the supply side… now [we] need to work on the demand side.”

Hiranandani suggested that could be taken care by a “strategic reduction” in the Goods and Services Tax over the next six months.

Hiranandani’s comments were echoed by Godrej Group chairman Adi Godrej who called it a “great announcement” that “will totally change the economic scenario in our country”.

Godrej went as far as to compare the corporate tax rate cut to the 1991 liberalisation. “I would say that the only announcement that was of greater imp for the economy was in 1991 (liberalisation) when we changed things,” Godrej said. “This will have tremendous positive effects in my mind…the economy will pick up.”

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