InvestorQ : Did the tax cut by the government in September 2019 really lead to an improvement in the flows from foreign institutional investors?
vidhya Laxmi made post

Did the tax cut by the government in September 2019 really lead to an improvement in the flows from foreign institutional investors?

Answer
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8 months ago


Actually, it did lead to a spurt in FPI flows. In fact, for the quarter ended Dec-19 FPI flows were at $6.3 billion. This contrasts with $3.22 billion FPI outflow in the Sep-19 quarter. The sharp cut in corporate taxes from 30% to 22% announced by the Finance Minister on September 20th changed the sentiments of FPIs. Most FPIs were also impressed with the government’s commitment to push reforms corporate tax rate cut, roll back of surcharge on the super rich, public holding expansion etc.