Trade bodies slam Indian tax law

The CBI and other industry bodies have written to Manmohan Singh, the prime minister of India, “to express deep concerns” about the tax provisions proposed in the Finance Bill 2012. The new laws would introduce a retrospective tax on overseas deals in India over the last 50 years and reverse the judgment of several cases, such as the Supreme Court’s recent dismissal of Vodafone’s $2.2bn tax bill from its acquisition of Hutchison Whampoa’s Indian arm. The tax proposals could also hit Kraft, which purchased Cadbury in India in 2010, and SABMiller’s buyout of Fosters.