Osborne to challenge India tax plan
India's CGT plan could backfire on the country, the chancellor is to warn officials
THE CHANCELLOR is to challenge an Indian tax plan that could hit Vodafone and other western companies with a retrospective tax bill of billions of pounds.
On his visit to India today, George Osborne is to make the case against New Delhi’s decision to backdate CGT on corporate acquisitions, warning that it could jeopardise local investment by UK companies, reports the FT.
A Treasury spokesman said: “This is an issue that concerns many British businesses and not just Vodafone,” as it emerged that Kraft and SABMiller would also be affected.
Global business lobbying organisations including the CBI and the US Council for International Business wrote to the Indian government expressing their “deep concerns” about the decision, which they said would make it hard for companies to predict the future cost of doing business in India.