British Government Withdraws Decision To Cut Tax On High Income

The UK government has announced to withdraw the tax cut package announced last month after the controversy escalated in the country. Explain that 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.'

In fact, the declaration to exempt the high-earning segment from the higher rate of income tax was issued ten days ago.  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 vehemently defended the tax cut plan her government had revealed a day earlier, stating that her administration will keep pursuing the initiative. However, he had agreed that some ground should have been prepared before this decision.

On September 23, the Truss administration unveiled a relief package that includes a 45 billion pound tax decrease. After this announcement, not only did the British market fall, but the value of the pound against the dollar has also fallen significantly.