Respecte
P CHIDAMBARAM
Subject:
Tax rates based on International Revenues
Thank you very much for driving India on higher growth path and trying to percolate the benefits to all.
As we globalize the multi-nationals will try to expand the operations by using their stronger position in one area of their business to subsidize the other area of business to drive away the competition. To negate the effect we need to have a tax RATE based on the company's international revenues.
Say one company has $20B in international revenues and their Indian operations is $1B. We need to have a tax rate of 1.1x % (based on $20B) tax rate on the $1B. A company with $2B in international revenues and $1B Indian revenues should have a lesser tax rate (<1.1x% based on $2B) on their $1B Indian revenues. Without these we have no way stopping the "imperialism" of the west as we open up the markets.
Yours Sincerely,
Mohan
United States
2007-02-28
Budget 2006