Yet they must compete with overseas firms that pay low tax rates on their own domestic investments and no additional home country tax on active profits from investments in other countries (including the U.S).
"We thought deliveries would go up before the end of the year in order to be eligible for the tax break--but that's just not doing it, and that may be because profits are so bad that companies can't get an additionaltax break, since there's nothing to write off against, " Wyss said, adding that the inability to attain financing is also a factor.
He estimated that the additional surcharge, and other direct tax initiatives, such as a withholding tax of 20% on profits distributed by unlisted companies to shareholders through a buyback of shares, would help the government raise a total of 133 billion rupees.