Correct Answer : United Kingdom
The new Liz Truss-led UK government on Monday(3rd Oct 2022) made an embarrassing U-turn on its central plank of tax cuts by withdrawing a controversial policy to abolish the topmost income tax slab for the wealthiest, following market turmoil and to avert a feared rebellion within the governing Conservative Party.
The decision, which marks a humiliating climbdown for Prime Minister Truss, comes after several Conservative MPs criticised the government's plan announced just 10 days ago.
Chancellor Kwasi Kwarteng declared that the announcement in his mini-budget of a proposed abolition of the 45 pence tax rate, which applied to the top tier of income taxpayers from next April, had become a massive distraction to an otherwise sound growth plan for the economy.
The plan to
scrap the 45p rate, paid by people earning more than
150,000 pounds (USD 167,000) a year, was announced as part of a package of tax cuts on September 23..
Source : Business Standard
