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Conservative chief Kemi Badenoch was accused by Indian officials of talking about “garbage” after denouncing the “two level” tax arrangement at the heart of the British / India trade agreement negotiated by Sir Keir Starmer.
New Delhi officials insist that Badenoch agreed that the principle of giving Indian employees in the use of the United Kingdom of the British national insurance tax during his time as a secretary to business and trade in the last conservative government.
“It’s incredible,” said a senior Indian official. “It was on the table when she was a secretary of commerce.”
Great Britain offered Indian workers a two-year national insurance flaw while Badenoch was in charge of commercial negotiations, but India wanted a four-year exemption, according to New Delhi officials. Starmer concluded a three -year compromise in the agreement unveiled on Tuesday.
“The conservatives offered us two years, but we said it was not enough,” said the Indian official. “They put it on the table. We wanted more than three, but the principle had already been conceded in exchange for a few donations from our sides on the services.”
Indian officials claim that the trade agreement was “95%” while Badenoch was a business secretary of the Rishi Sunak government, but the negotiations were interrupted due to the elections in the two countries.
Badenoch strongly criticized the national insurance element of the trade agreement. “These are two-level two-level taxes on two levels,” she tweeted, adding that she refused to sign the agreement.
Badenoch spokesman denied the Indian story of Ni negotiations, saying: “The Indians put it on the table and Kemi said. From where we have not signed the agreement.
“Kemi’s first principle with trade agreements has been that they should be goods and services and nothing on immigration, beyond very short and limited limited mobility visas.”
India has pushed strong during three-year negotiations for the “double contribution agreement”, which will grant Indian employers in the use of the United Kingdom of the National Insurance Tax of 15% British paid by companies.
The agreement to avoid double taxation also covers the contributions of Ni paid by employees, with New Delhi believing that it will reduce costs for companies employing Indian workers displayed in the United Kingdom by around 20%.
Badenoch did not raise the India’s trade agreement to the Prime Minister’s questions on Wednesday, with a number of superior conservatives publicly approving the result of the discussions.
The Prime Minister told deputies: “The agreement with India is a huge victory for workers in this country.” He added: “It is the biggest trade agreement that the United Kingdom has concluded since we left the EU.”
Starmer said that criticism of the double taxation agreement was “inconsistent nonsense”, adding that it was part of the agreements that Great Britain already had with 50 other countries. He challenged Badenoch to say if she would scam them.
Following the Prime Minister’s questions, Badenoch spokesperson called on the government to quickly publish a complete impact assessment on the cost of the UK double tax agreement and the probable change in the number of Indian workers coming to the United Kingdom.
“There must be a complete evaluation of the amount that will cost and the number of people to that,” said Badenoch spokesman.
Earlier, Sir Oliver Dowden, the former conservative minister, praised the agreement, Writing on x that it “relies on significant progress made by the previous conservative government”.
Sir Jacob Rees-Mogg, the former Brexiter business secretary, said on X: “Food and cheaper drinks, including rice and tea, shoes and clothes thanks to a welcome commercial agreement with India. Exactly what Brexit has promised. “
