RBI Governor D Subbarao for stable taxation and investment regime to attract FDI
NEW YORK: Reserve Bank India Governor D Subbaraohas appeared to have joined the debate on the recent controversial retrospective taxation provisions saying there is need to have a stable policy, taxation and investment regime to attract foreign capital.
"India has to run a stable policy regime and have a stable taxation and investment regime," he said during his lecture at the Asia Society here.
He was responding to a question on what India should be doing to inspire trust and confidence of investors.
"We need to streamline our foreign investment policy and procedures, improve infrastructure, improve our governance," to make the system more friendly for investors, the RBI Governor said.
"Potential foreign investors have to have confidence that India has a stable, predictable, transparent capital sector regime," he said.
The 2012-13 Budget introduced a controversial retrospective tax provision in the wake of Supreme Courtjudgement quashing the tax demand on Essar-Vodafone deal.
The Finance Bill also had provisions for introduction of General Anti-Avoidance Rules ( GAAR) under which investors rather than tax department have to prove that they do not attract tax provisions.
Subbarao sought to allay concerns that the investment climate in India is losing its attractiveness among foreign investors, saying the country still has an investor friendly environment with the central and state governments anxious to attract investments.
"India has to run a stable policy regime and have a stable taxation and investment regime," he said during his lecture at the Asia Society here.
He was responding to a question on what India should be doing to inspire trust and confidence of investors.
"We need to streamline our foreign investment policy and procedures, improve infrastructure, improve our governance," to make the system more friendly for investors, the RBI Governor said.
"Potential foreign investors have to have confidence that India has a stable, predictable, transparent capital sector regime," he said.
The 2012-13 Budget introduced a controversial retrospective tax provision in the wake of Supreme Courtjudgement quashing the tax demand on Essar-Vodafone deal.
The Finance Bill also had provisions for introduction of General Anti-Avoidance Rules ( GAAR) under which investors rather than tax department have to prove that they do not attract tax provisions.
Subbarao sought to allay concerns that the investment climate in India is losing its attractiveness among foreign investors, saying the country still has an investor friendly environment with the central and state governments anxious to attract investments.
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