(a) whether the tax structure in our country is high, as a result of which foreign companies
are not willing to set up business here;
(b) if so, whether a tax policy will be formulated on a long term basis;
(c) if so, the details thereof; and
(d) if not, ttie reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a): India is currently following a moderate tax rate regime which is at par with global trends. Setting up
of business by foreign companies In India depends on a large number of factors and unwillingness of foreign
companies to set up business in \nd\a, if any, is not attributable to a country`s tax structure alone. .
(b): Formulation of tax policy on a long term basis is an ongoing process and the prevailing moderate tax rate
regime is the result of such formulation. The tax rates are evolved taking into account the need to facilitate
compliance, make industry competitive and to generate adequate resources.
(c) & (d): In view of replies to (a) and (b) above, do not arise.