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India proposes to slash tax

Friday 28 February 1997 19:02 EST
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India proposes to slash tax

The Indian government proposed slashing corporate and personal income taxes with a new budget plan.

Palaniappan Chidambaram, the Finance Minister, announced that the government planned to reduce the tax on domestic corporations to 35 per cent from 40 per cent, and to abolish a tax on dividends. Mr Chidambaram also proposed scrapping a 7.5 per cent surcharge on corporations. He added that the budget, which must be approved by parliament, would cut personal income- tax rates across the board and bring down the maximum rate to 30 per cent from 40. Reuters - New Delhi

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