Retrospective tax: A policy based on delusion gets buried.

I remember choking on my morning coffee on reading a news report which said that India’s finance minister (FM) had made a statement in Parliament that Indians won’t have to eat lizards if foreign direct investment (FDI) flows are affected.

Shri Radhey Shri Radhey Shri Radhey Shri Radhey..

It was 2012, and Pranab Mukherjee was responding to a question about whether he expected the amendment in tax laws, popularly known as the retrospective tax amendment, to affect foreign investment. A pragmatic man on most occasions, his display of irritation at the thought that India’s tax policy changes would be unpalatable to foreign investors was palpable.

Tax policy has always been regarded as the sovereign right of each nation State; so why would the global investment community have a problem? Well, because just as in the case of any other investment, capital moves to economies which give investors a sense of security. And one of the foremost factors to induce such security is the transparency and stability of tax policies. Even if tax rates are high, investors will still move capital to nations as long as they know what to expect since the tax rates can be factored into their business plans. The converse, however, is repulsive — unpredictable and non-transparent rates muddied with ifs and buts, even if low, drive away capital.

Shri Radhey Shri Radhey Shri Radhey Shri Radhey Shri Radhey Shri Radhey Shri..

We should be considered to achieve all material of contamination .