India's tax plan may damage investment climate: UK finance minister

India’s proposals to allow authorities to retrospectively tax overseas deals are a concern, British Finance Minister George Osborne said on Monday, adding that they might damage the country’s overall investment climate.

International trade groups representing more than 250,000 companies have written to Prime Minister Manmohan Singh to warn him that new taxation proposals by his government have led foreign businesses to reconsider their investments.

The budget last month outlined proposals that would allow authorities to make retroactive tax claims on overseas deals, such as Vodafone Group Plc’s (2007 acquisition of mobile phone assets in India.

Reuters