Proposed tax on international card purchases may drive sale of luxury brands in India

The Indian government's proposal to impose a 20% tax on expenditures made abroad under the Liberalised Remittance Scheme is expected to boost the sale of luxury brands in India. Due to the pandemic, international travel restrictions shifted sales to domestic stores, and the narrowing price gap between foreign and local markets, after accounting for the 20% tax collected at source, is attracting Indian consumers.

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