Wednesday, March 12, 2008

India May Overtake UK As Favoured Investment Destination

London: India may soon overtake Britain as a favoured investment destination in the world unless Chancellor Alistair Darling cuts 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 equalled 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 per cent to 28 per cent from next month, 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 said that the UK had "now reached a tipping point''.

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