Moody#39;s says corporate tax cut too boost net income of companies
Moody’s Investors Service on September 20 said the government’s move to cut corporate tax rate will boost net income of Indian firms, and is a credit positive move.
“The Government of India’s decision to reduce base corporation tax to 22 per cent from 30 per cent will boost net income of Indian corporates and is credit positive,” said Vikas Halan, senior vice president, corporate finance group, Moody’s Investors Service.
He said the extent of final impact on credit profiles of Indian corporates will depend on “whether they utilize the surplus earnings for reinvestment in business, debt reduction or high shareholder returns.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.