The government has decided to expand the scope of expenditure of profits by 2 per cent on Corporate Social Responsibility (CSR) on Thursday. This will allow easy expense on incubators or research grants to various institutes which are engaged in promoting scientific research.
Meanwhile, the total revenue forgone for the reduction in relief is estimated to be Rs. 1,45,000 crore per year.
The Finance Minister Nirmala Sitharaman had addressed a press conference in Panaji, Goa. The Finance Minister and several State Finance Ministers have gathered in Panaji to take part in the Goods and Services Tax Council Meet.
"Government has decided to expand the scope of 2% spending on CSR. This can now be spent on incubators funded by central/state governments, or any agency or PSU of central/state govt, and making a contribution to publicly funded universities," Finance Minister Nirmala Sitharaman announced.
While a separate press conference will be held after the GST meet, Nirmala Sitharaman's morning press conference was focused more on enhancing domestic manufacturing and Make in India scheme.
This meeting also announced that the corporate tax rates have been slashed to 22 per cent for domestic companies and 15 per cent for new domestic manufacturing companies and other fiscal reliefs. This comes as a major bonanza for corporate taxpayers.
This step will lead to increased competition and also minimizing tax cash outflows which would be ploughed back into the economy.
Shaktikant Das, Governor, RBI said, "This is definitely a bold and welcome measure. Highly positive for the economy."
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