Implications of tax rate cuts for consumer staples and banking sector

Last week the government announced 8 percentage po... moreLast week the government announced 8 percentage point cut in corporate tax. Lower tax would mean that companies get to keep more profits with themselves for various purposes. Companies may pay higher dividend, pay off costly debt, invest in capacity or even pass on the benefits to customers by cutting prices of their products. Here, we discuss the impact on two sectors: consumer staples and banking.