Key facts
- India exempted foreign investors from its 12.5% capital gains tax.
- India aims to attract more foreign capital amid external economic vulnerabilities.
- The Reserve Bank of India introduced measures to support foreign capital inflows.
- Indonesia will exempt natural resource exporters from income tax on export revenues.
- The exemption applies to export revenues deposited in domestic Indonesian banks.
- Indonesia's exemption is effective from June 1.
- Indonesia's policy aims to bolster the rupiah.
- Indonesia's policy encourages exporters to hold foreign exchange earnings onshore.
India has exempted foreign investors from its 12.5% capital gains tax as part of efforts to attract more foreign capital. This decision comes amid external economic vulnerabilities. The Reserve Bank of India has also introduced measures to support these capital inflows.
In a parallel development, Indonesia's government will exempt natural resource exporters from income tax on export revenues that are deposited in domestic banks. This exemption is effective from June 1. The primary objectives of this policy are to bolster the Indonesian rupiah and to encourage exporters to hold their foreign exchange earnings onshore rather than abroad. This measure is intended to improve the country's foreign exchange reserves and currency stability.