GUWAHATI, Sept 22 - Terming the Centre�s latest decision to cut corporate tax rates an inadequate measure to revive the economy, former Chief Minister Tarun Gogoi has called upon the government to provide tax relief and other incentives to all sections of society to boost consumption and generate demand.
�The recent tax reduction to 25.17 per cent for the corporate sector by Finance Minister Nirmala Sitharaman has indirectly confirmed that the economy of the country is in a complete mess. Besides, the U-turn of the Finance Minister, after her Budget proposals a few months ago, reveals her immaturity and wrong assessment on the economic front. It is also surprising that Prime Minister Narendra Modi, who once praised the Finance Minister for the Budget proposals, has now described these measures of corporate tax cut as a bold step and it has confirmed that even the Prime Minister has lacked his capacity (sic) in assessing the real economic situation prevailing in the country,� said Gogoi.
He added, �It is definite that it (the latest announcements) will help the corporate sector but I have my doubt on how far these measures of tax cut in favour of the corporate houses will boost the economy of the country and reduce the hardships and sufferings of the general public by providing adequate employment opportunities.�
The former Chief Minister said the government should provide relief in taxes and other incentives to all sections of people, including farmers, artisans, teachers, weavers and small and medium entrepreneurs to big a boost to demand and increase consumption.
Gogoi said the Centre�s latest decision has proved that demonetisation and �the wrong and hasty� implementation of the GST are mainly responsible for economic slowdown of the country, resulting in large-scale unemployment, agrarian distress and sufferings and hardships of all sections of people, particularly the lower and the middle classes.
�Though the Prime Minister claims that he belongs to a poor family and is very much concerned about the poor, but when there are instances of misery and distress of the farmers and thousands of them have committed suicide, adverse impact on the small and medium enterprises and large-scale unemployment, his response to their problem seems to be sluggish.
�On the other hand, whenever the big corporate houses raise their (sic) incurring losses, Prime Minister Modi quickly feels their pain and comes to their rescue immediately. But we have not seen such bold and prompt response in case of common public,� he said.
Gogoi added that the key to finding answers to the issues affecting the economy is to find ways to create adequate employment opportunities and increase the purchasing power of the people, which will lead to more demand for consumption and growth in the manufacturing and production of goods and services, which will also help the corporate sector.
