Pointing to the adverse impact of retrospective taxation on investor sentiment, Union Finance Minister Arun Jaitley on Monday assured industry that the Centre was determined to bring in “perfectly non-adversarial taxation.”
“We are creating mechanisms inside the Revenue department to suggest changes in the taxation regime,” Mr. Jaitley told investors at the Vibrant Gujarat Summit here at a session on ‘Financing for Future Growth.’
A road map in the direction was being prepared, he said.
Calling retrospective taxation “as the defining moment against investment in India,” Mr. Jaitley said the Centre had no intention of levying retrospective tax.
India had wasted five years from 2008 to 2013 to bring in a new company law that was “completely out of tune with the current business requirement.” In a bid to facilitate investments, the current government had identified 50 roadblocks in consultation with business leaders and would work towards their speedy resolution, he said.
Stating that policy decisions would take some time to show results, Mr. Jaitley said the government would be able to implement the common Goods and Services Tax (GST) across the country in a year.
The recent ordinance amending the Land Acquisition Act 2013 had simplified procedures and made exemptions for defence, rural infrastructure, affordable housing and industrial corridors, the Minister said.
“Our provisions are friendly to the rural areas and areas which made economic activity in rural areas have been altered. An impractical legislation had to be altered. People show support in private, but cite political compulsions to take a contrary stand. The amendments will help farmers; rural India will benefit from industrial corridors, which would run through them,” he said.
