New Delhi: The Finance Minister has said on Thursday that no new retrospective tax would be applied, which may be good news for foreign investors anxious about retrospective tax fall out . A welcome news for many global companies that have waited for the first Modi government budget this year. BJP had promised to end tax terrorism in its manifesto for the 2014 Indian elections.
Vodafone mobile operator which challenged a $2.2 billion tax bill for its 2007 acquisition of Indian mobile assets from Hutchison Whampoa, would be pleased with Arun Jaitley’s announcement.
International investors who fled over reform policy inaction by the previous coalition government will be flooding back with the introduction of the foreign direct investment.
The Finance minister has also proposed E-Visa’s in nine airports for foreign tourists in six months to boost tourism, and more countries to its list of visa-on-arrivals.
It will also introduce Foreign Direct Investment in Defence and Insurance at 49%. This will bring news to countries like the US and UK that had lobbied hard with India to increase FDI caps in these sectors. It will also send a positive message about India being a sound FDI destination.