Fringe tax proposal to stay: FM

NEW DELHI: India will not withdraw a fringe benefit tax proposed in the federal budget but the government could review the provisions of the tax, the finance minister said on Friday.

"The fringe benefit tax will stay but we can look at the provisions to ensure that legitimate business expenses are taxed," Palaniappan Chidambaram told a business conference.

Domestic industry has been opposing the tax which seeks to levy perks offered to employees like club membership and entertainment ever since it was announced in the budget this week.