Taxing times

A study on international tax rates done by the World Bank, the International Finance Corporation and PricewaterhouseCoopers shows that India’s tax rates are indeed high, with a total tax rate (tax paid as a percentage of profit before tax) of nearly 63.3%, but is in sync with many other large economies. Among the Bric countries, China has a similar tax rate, Brazil has a higher tax rate with Russia being the exception with a lower rate. Indian companies may yearn for lower tax rates, such as those in South Africa. Meanwhile, if the unified goods and services tax is implemented, India’s total tax rate (TTR) should fall a bit in the years ahead.