New Delhi: As if corporate tax cut were a life saving drug, the healthcare industry went gaga over the munificence of Union Finance Minister Nirmala Sitaraman, saying it was just what the doctor ordered.
Prominent Healthcare leaders have given a very good prognosis and expressed hope the step will heal slowdown in economy if any. They have termed it a kind of booster dose. On September 20, the union government slashed the corporate tax to 25.2% from 34.9%. They say corporate hospitals too would reap nutrition from the pouring of concessions.
In statement to Medicare News, Padma Shri Dr Azad Moopen, Founder Chairman & Managing Director, Aster DM Healthcare spanning India and UAE erupted in joy and went gaga over the munificence.
Dr Moopen said, ‘The huge relief in corporate tax announced by Finance Minister of India Smt Nirmala Seetharaman is real music to the ears, not only to the corporate world but for everyone doing business in India. The stock market has soared to dizzy heights, with Sensex creating a 10 year record. Let us hope that this deep tax cut will help spur growth and will be a fillip for the flagging economy. As the new corporate tax is one of the lowest in Asia, this will also help to increase the flow of FDI to India.’
‘The broadening of areas for CSR is a welcome move which will boost innovation and research in the country for companies like us who are thickly involved in this area with own Innovation Center and research lab, Dr Moopen further added.
Aster DM Healthcare is one of the largest private healthcare service providers operating in multiple GCC states and is an emerging healthcare player in India. With an inherent emphasis on clinical excellence the Company is one of the few entities in the world with a strong presence across primary, secondary, tertiary and quaternary healthcare through its 25 hospitals, 115 clinics and 231 pharmacies.
Apollo Hospital’s Chairman Dr C Pratap Reddy’s optimism knew no bounds as the cut was announced. In an emotional outburst, he said, ‘ We assure the government we would rise to the challenge of economic growth and job creation and do everything in our power to make government’s vision of GDP of 5 trillion USD by 2025 a reality.’
Dr Reddy further added, ‘We heartily welcome the measures announced by the govt. 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, Dr Reddy said.
‘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.