The Economic and Social Survey of Asia and the Pacific (1996) was released in mid-April by the regional UN organisation the Economic and Social Council for Asia and the Pacific (ESCAP). It provides an economic overview of Asian economies for 1995—albeit based on data provided by member governments. This year, ESCAP´s economists paid special attention to the role of the . private sector in economic development. Below, we present Survey´s compilation of fiscal and investment-related policies as they have evolved recently in the major economies of South Asia.
Direct Indirect Taxes
Bangladesh. Deregulation and lowering of tax rates were taken up in an aggressive manner. The highest marginal rate for individual taxpayers and registered firms was reduced significantly. The value added tax (VAT) system was strengthened. The exception limit of the wealth tax was raised. The income tax rate for publicly traded companies and other companies was reduced.
India. Reforms in the direct tax system concentrated on removing procedural complexities and incentive measures. A five-year exemption from income tax for industrial enterprises and power generation/transmission projects located in certain areas was enacted. A similar exemption has been granted in notified technology parks. Specific rules were introduced for the taxation of income and capital gains of foreign institutional investors. Exemptions of gift tax were increased and a system of modified value added tax was introduced and extended to cover many products.