The British government has announced to withdraw the tax cut package announced last month after the controversy escalated in the country. Under this package, it was said to cut the higher rate of tax on the higher income group.
Finance Minister Quasi Quarteng said in a statement issued on Monday that he would not remove the provision for income tax at the rate of 45 percent on income above 1.5 lakh pounds. He said, ‘We have taken this decision after the voices are being raised about this.’
British government takes a U-Turn
In fact, 10 days ago, the announcement was made to give relief to the high-income section from the higher rate of income tax. There was widespread opposition to this decision in Britain. Members of Parliament of the ruling Conservative Party were also not happy with this and they were continuously pressurizing the government to withdraw it.
Prime Minister Liz Truss had strongly defended the tax cut plan announced by her government a day earlier, saying her government would continue to pursue the plan. However, he had agreed that some ground should have been prepared before this decision.
The Truss government on September 23 announced a relief package that included tax cuts of 45 billion pounds. After this announcement, not only did the British market fall, but the value of the pound against the dollar has also fallen significantly.