AFTER HIKING import duty on gold , the government and the Reserve Bank of India are learnt to be considering multiple measures to attract foreign investment inflows including a cut in the withholding tax rate on government bonds, if not completely eliminating it. Withholding tax is akin to a tax deducted at source and is paid by foreign investors on interest income they receive on their holding of Indian bonds. At present, non-residents pay a withholding tax of about 20% on the interest they get on the government bonds they hold — one of the highest in the world — after a concessional rate of 5% ended in 2023. The discussions on some of these proposals have been on over the past few weeks with policy makers keen to conserve foreign exchange reserves and secure the external account amid the ongoing West Asia conflict.…