Govt may exempt FPIs from super-rich tax to reverse economic slowdown

Nirmala Sitharaman had proposed increasing the effective tax rate on individuals with taxable annual income of above Rs 2,000 cr by about 3%, and for those earning above Rs 5,000 cr by 7%

India may soon roll back an additional levy on foreign funds and announce other measures to boost economic growth, a government official said in comments that helped the stock and currency markets reverse losses.

Prime Minister Narendra Modi’s administration is finalising a package to reverse the economic slowdown, the official told reporters, asking not to be identified as a decision is yet to be announced. Key among them is a likely exemption to foreign portfolio investors from a tax on super rich announced in the budget.

Finance Minister Nirmala Sitharaman had proposed increasing the effective tax rate on individuals with taxable annual