Japan, India Discuss Sanctions, Software Taxes

ByBridgeNews Japanese business leaders visiting India this week say they favor the early lifting of sanctions imposed against India and asked that both countries resolve the issue in order to step up bilateral trade. Japan imposed economic sanctions on India in May 1998 following its nuclear blasts. "Japan's business community feels that the two countries should make progress in lifting economic sanctions imposed on India," Takashi Imai, chairman of Japan's Federation of Economic Organizations told reporters Oct. 31. Imai is heading the Japanese delegation. The business delegation is in India as a follow up to Japanese Prime Minister Yoshiro Mori's visit in August. Imai said the delegation met Indian finance minister Yashwant Sinha and discussed the issue of taxes imposed by Japan on subsidiaries of Indian software companies. India has been demanding that Japan waive the 20% withholding tax imposed on the subsidiaries. Imai says his group supports discussions to resolve the tax concern.