India eyes revised tax regime
January 26, 2015
Indian Prime Minister Narendra Modi on Monday told an audience of US chief executives in New Delhi his government was in the process of devising a fairer and more predictable tax system so as to make it easier for foreign investors to make sound business plans for his country.
Under the previous leadership, many foreign investors had complained about red tape, corruption, and arbitrary and aggressive taxation. Modi acknowledged the tax rules had been too harsh and said he planned to lessen the burden significantly.
"We have removed some of the excesses of the past," Modi told visiting US President Barack Obama. "We will soon address the remaining uncertainties.
In need of foreign capital
Modi also promised to deal with concerns about intellectual property that have long irked potential investors in Asia's third-largest economy.
The Indian prime minister made it clear that he wanted to shake off his nation's reputation as being hostile to business and foreign investors in particular.
Modi sees attracting more capital from abroad as key to putting India on the path to sustainable growth. His "Make in India" campaign is designed to turn the country into a manufacturing hub.
In the World Bank's latest business climate survey, India still ranked 142nd out of 189 countries as red tape and corruption had proved hard to combat.
hg/bk (AFP, Reuters)