Accepts proposition to reduce taxes for small entrepreneurs.

V Vaidyanathan, chairman, Capital First Limited.

''Am happy the budget has accepted the proposition that MSMEs and small entrepreneurs could pay tax at lower rate of 29 per cent , which is a definite move towards progressive taxation in the corporate sector. This has been our long standing recommendation since many years. Further a key move is to tax new companies at 25 per cent which reiterates to move towards lower corporate tax rates of 25 per cent one day, which will make us more internationally competitive. By sticking to discipline on fiscal deficit at 3.5 per cent the government has paved the road for reduction in interest rates by the RBI hopefully very soon.''