Lower rate of withholding tax of 5% on fund augmented from foreign borrowings extends to all businesses

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Lower rate of withholding tax of 5%, extended to fund augmented from foreign borrowings for infrastructure sector, now extends for all businesses

In order to augment long-term low cost funds from abroad for the infrastructure sector, Finance Bill proposes a lower rate of withholding tax of 5% for funding specific sectors through foreign borrowings. To further facilitate access to such borrowings, I propose to extend the lower rate of withholding tax to all businesses. This lower rate of tax would also be available for funds raised through long term infrastructure bonds in addition to borrowing under a loan agreement.