PTI Sep 20, 2019, 03.12 PM IST

NEW DELHI: Healthcare industry on Friday welcomed the government's decision to slash corporate tax, and said rationalisation of tax structure will provide much-awaited booster dose to the sector.

In a major fiscal booster, the government on Friday slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.

"Reduction in corporate tax and other relief would create a favourable business climate for the companies which were under tremendous pressure due to several internal and external market forces," Nathealth President H Sudarshan Ballal said.

The apex healthcare industry body believes that the corporate tax reduction move would be supplemented by the Goods and Services Tax (GST) reforms as well.

Apollo Hospitals Chairman Prathap C Reddy said: "We heartily welcome the measures announced by the hon'ble Finance Minister today. Corporate India has for long been advocating standardised rates of corporate taxation, as a tool to drive creation of investible surplus and enhanced dividend payouts to drive purchasing power" ..

The initiative to give even lower levels of tax rates to new manufacturing firms is also a welcome move. India has the potential to become the manufacturing hub for the world, and drive job creation. In healthcare, this will give a boost for the manufacturing of domestic consumables and devices, he added.