India may overtake UK as favoured investment destination
India may soon overtake Britain as a favoured investment destination in the world unless Chancellor Alistair Darling cut taxes in Wednesday's budget, a leading consultant agency has said in its report.
Businessmen here have demanded a radical overhaul of corporate tax. Thousands of people of Indian origin are keenly awaiting the budget amidst reports that non-domicile residents in Britain are expected to be taxed 30,000 pounds.
In its report titled “Finding its way: a return to the competitive path for Britain?” Ernst & Young recalled that in its European Attractiveness survey for 2007, UK had been overtaken by India and Russia and equaled by Poland.
Chris Sanger, Head of Tax Policy at Ernst & young, said: “Other countries and regions in Europe have stolen a march on the UK by offering fiscal incentives and tax breaks that are proving to be a great success.
“Although Gordon Brown as Chancellor announced the reduction in the main rate of corporation tax from 30 percent to 28 percent from April, many would argue that is just not enough to make the UK a competitive place to do business.”
In a report titled, 'UK business tax: a compelling case for change,' the Confederation of British Industry (CBI) said that the UK had “now reached a tipping point.”
It said: “The ever rising business tax burden and the failure of the tax system to respond to increasingly global business activity is creating a corporate tax system which is unsustainable in the long-term.”
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