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Wednesday, Mar 20, 2002

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Tax on foreign cos to be lowered gradually

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Dr S. Narayan, Revenue Secretary, and Mr Biman Sareen, Regional President, Indo-American Chamber of Commerce, at a luncheon meeting on the Budget 2002-03 with members of the Chamber in the Capital on Tuesday.

NEW DELHI, March 19

THE Government today said that the corporation tax rate on foreign companies would be progressively brought down from the Budgetary proposal level of 40 per cent.

Addressing a post-Budget meeting of the Indo-American Chamber of Commerce here, the Revenue Secretary, Dr S. Narayan also said that the Government would continue with its policy of imposition of special additional duty of customs (SAD) and countervailing duty on some select items to protect the interests of the domestic industry against cheaper imports.

"The CVD and SAD on some select items would continue to remain for our national interest, just as in the US, which keeps its national interest, the first priority," Dr Narayan said.

The Finance Minister, Mr Yashwant Sinha, had in the Budget for 2002-03 announced a reduction in corporation tax rate for foreign companies to 40 per cent from 48 per cent. After the imposition of 5 per cent surcharge, the effective rate of tax for foreign companies under the Income-Tax Act would come to 42 per cent.

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