More than a month after Finance Minister Nirmala Sitharaman announced cuts in corporate tax, the automobile industry has decided to use the savings to fuel capex, boost marketing and to offer discounts to consumers.The minister slashed effective corporate tax to 25.17 percent, inclusive of cess and surcharges, applicable from April 1, 2019, translating to an annual revenue loss of Rs 1.45 lakh crore to the exchequer.With the exception of car market leader Maruti Suzuki, no other automobile company has reduced prices of their models due to the tax cut. Delhi-based Maruti reduced prices by Rs 5,000 on 10 models including the Swift, Brezza and Baleno in September.Close Its peers are using the tax benefit in other ways. Mahindra & Mahindra has indicated that it will use the money to get its capex cycle going. Managing Director Pawan Goenka has said the corporate tax reduction translated to a saving of less than 1 percent per model, thereby making it ineffective for being passed on to the consumers. related news After Airtel and Vodafone Idea, Reliance Jio to hike mobile tariffs Gold price gains Rs 125 at Rs 38,224 per 10 gram; silver up 1.4% RCom’s committee of creditors to meet on November 20 For… Read full this story
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