The UK-India Business Council (UKIBC) has urged finance minister Nirmala Sitharaman to bring parity in the corporate tax rates applicable to foreign and domestic companies and remove retrospective amendment to the Income Tax Act in the upcoming Budget. The reduction in the corporate tax rate for domestic firms, coupled with the abolition of dividend distribution tax (DDT), creates significant disparity between the effective tax rates applicable to foreign companies at 43.68 per cent and domestic companies at 25.17 per cent. In its recommendations for the upcoming Budget submitted to the finance minister, UKIBC said, “Globally, the general practice is to have a tax rate parity across all kinds of companies within the same industry.