Wooing investors with promise of an easier business environment and stable tax regime, Prime Minister Narendra Modi on Sunday said retrospective taxation has been made a thing of the past but he is “not able to do anything” on two cases inherited from the previous government as they are “sub-judice.”
GST regime
Inviting Saudi businesses to come and invest in India’s defence, energy, railway, health and agriculture sectors, Modi also said a common indirect taxation regime in the form of GST (Goods and Services Tax) was “about to happen”.
He, however, refrained from giving any specific timeframe.
Addressing a select group of Saudi and Indian business leaders on the last day of his two-day visit to Saudi Arabia, Modi said his government has opened up many sectors to foreign investment and India stands out as a “beacon of hope” amidst global economic slowdown.
Favourable environment
Prime Minister further said the Centre was trying to strengthen the banking network in India by freeing them from non-performing assets (NPAs) of state-run electricity companies whose liabilities had gone up significantly.
Modi said India has taken major policy initiatives to create favourable environment for investors besides removing administrative bottlenecks. In this regard he said the World Bank has placed India on 12th position in the list of countries that had ensured ease of doing business. “Today, the world is facing a very deep economic crisis and in this situation, India is a beacon of hope. Whether it is World Bank, IMF or credit rating agencies, all of them consider India one of the fastest growing economies,” he said.
On roll out of the much-delayed GST, Prime Minister said, “GST will happen. I cannot give a timeframe, but it will happen. It was our commitment, and it is about to happen.”
Retrospective tax
To a question on retrospective tax, Modi said it will never be brought back again. He said two cases were ‘sub- judice’ and it would not be proper for him to comment further.
“As far as retrospective tax is concerned, it is a thing of the past. We have repeatedly said this in Parliament and I am repeating here again today.