Accountants and lawyers have warned India that its proposals to change its tax code extensively could hinder the business appeal the country currently has. Although the tax reform is to include a drop in corporation tax from 30% to 25%, those companies who took advantage of a tax free period during the growth of their business will potentially, under the new code, be required to pay tax on their assets which is not dependent on whether they make a profit or loss. Uday Ved, head of tax at KPMG in India told the Financial Times that the new code will bring about 'huge change'. He said of the tax on assets: 'In a large infrastructure project a company could incur losses in the initial period but still pay tax of 2% of assets'. Professionals are also claiming that, if implemented, the proposals will affect the large number of tax treaties India has with other jurisdictions by allowing tax commissioners the ability to turn their back on double tax sharing agreements. Nishith Desai, an international corporate and tax lawyer based in Mumbai said: 'Tax treaties are part of international law. The [code] would give commissioners the power to disregard a treaty'. If parliament pushes the proposals through, it is expected that they will be implemented by 2011.