A body representing Indian entrepreneurs has warned Chancellor Alistair Darling that his plan to impose a heavy tax on non-domiciled UK residents will lead to a much greater exodus from Britain than anticipated.

Darling’s proposal to levy 30,000 pounds charge on non-domiciled taxpayers has generated much concern among Indian and other non-domiciled entrepreneurs and businessmen in the UK. Reports say that some of them are preparing to quit Britain.

In a letter to the Financial Times, the UK wing of The Indus Entrepreneurs (TIE) said  Darling’s proposals would undermine Britain’s attraction to thousands of investors and entrepreneurs from the Indian subcontinent.

Prominent Indian business leaders in Britain said that they believed many thousands will leave the country. They are also angry at the short notice that has left them little time to decide what to do next.