'High tax levels in India hitting fund inflows'
India's "partially-rigid tax policy" is responsible for low foreign investment flowing into the country, a leading foreign tax consultant said today.mumbai Updated: Jun 10, 2010 22:00 IST
India's "partially-rigid tax policy" is responsible for low foreign investment flowing into the country, a leading foreign tax consultant said on Thursday.
"The tax policies in India are partially rigid, if compared to those of the US and European countries. The level of taxation in India is very high," Deloitte SA's (Luxembourg) Tax Partner Henri Prijot told reporters on the sidelines of a book launch here.
However, he said that India offers "significant opportunities for international exchanges, for both inbound and outbound investments".
"Foreign countries want to invest in India as it has great potential in terms of educated and intelligent human resources. India is definitely gradually moving towards becoming an open economy. But, if it (India) wants more foreign direct investment, the government should rethink its taxation policy," he said.