Finance Minister Arun Jaitley assuring the US investors that the government does not intend to legislate retrospectively and is looking to put a 'quietus' to the matter has termed the controversial retrospective taxation regime a “legacy issue”. The finance minister, who is on a 10 day visit to US to sell the India growth story, said the government has categorically made it clear that “we do not intend to legislate retrospectively. We do not intend that any fresh action under the old retrospective laws be taken.”
Jaitley added that for the future, this is a closed issue and investors are quite appreciative of that. As far as past is concerned, it relates to only some individual companies and the issue is pending before some judicial or dispute redressal mechanism body. “And therefore, when I said we are looking for putting a quietus to this, I had in mind waiting for the expeditious disposal of that dispute.” FM said that just as some transfer pricing has been resolved by a judgement of the Bombay High Court, which we accepted and we put an end to the whole issue that is what the similar quietus I was referring to.
Last year, the government had set up a four-member committee, headed by Joint Secretary of the Foreign Tax and Tax Research-I unit of Central Board of Direct Taxes to scrutinise all cases arising out of retrospective tax amendment.
Finance minister termed India as a bright spot in an otherwise troubled global economy and said that the new Indian government offers a stable, predictable and transparent policy regime, making the country an attractive destination for investors. He added that the government is fairly determined to continue this process so that it can give further boost to our economy.
