The World Bank President Mr Robert Zoellick on Friday expressed hope that investors would give more time to the Indian Government to explain the logic behind the proposed anti-tax avoidance rules and the way it would be implemented.
He also said that the World Bank is keen to eliminate tax havens, but at the same time not be unfair to poor countries. The World Bank has supported the G-20 efforts to avoid tax havens, Mr Zoellick, whose term ends in next few months, told a press conference here.
Mr Zoellick said that he had discussed the issue of anti-avoidance rules and the retrospective amendments proposed in the Budget with the Finance Ministry. He said that the response of the Ministry to those issues appeared “fair and reasonable”. The World Bank President said that it was not fair to dodge taxes and that it had to be paid in some jurisdiction or the other.
His remarks came on a day when the Finance Minister, Mr Pranab Mukherjee, clarified that tax liability would not be attracted on P-Note holders.
Earlier in the day, Mr Zoellick met Mr Mukherjee. Both leaders discussed the global economic situation and also the macroeconomic developments in India.
On the Indian economy, Mr Zoellick said that he was confident that the economy would continue to be a fast growing one and an influential too. The anticipated 7 per cent GDP growth for India was not a bad one given the current global economic environment, he said.
He also said that the World Bank was willing to bring in additional financing to help sustain India's growth momentum.