Reforms like removal of retrospective tax law show govt’s resolve to push growth: PM Modi
The passing of the amendment bill will alow the government to withdraw all tax demands made on companies like Cairn Energy and Vodafone using a 2012 legislation on indirect transfer of Indian assets prior to May 28, 2012.
New Delhi: Reform measures including the removal of retrospective tax amendment are a testimony of the government’s resolve to push the boundaries to bring high and inclusive growth, along with other initiatives like the Factoring Amendment Bill and the Deposit Insurance and Credit Guarantee bill, Prime Minister Narendra Modi said today.
He was speaking at the CII Annual Meeting 2021 with the theme “India@75: Government and Business Working together towards Atmanirbhar Bharat” in a virtual address. The Parliament had on Monday cleared a bill to burry the ghost of retrospective taxation which had created “discontent” among foreign investors.
The passing of the amendment bill will alow the government to withdraw all tax demands made on companies like Cairn Energy and Vodafone using a 2012 legislation on indirect transfer of Indian assets prior to May 28, 2012. Modi also said the government has utilized the pandemic to undertake bold reforms such as in privatization, defence, space, atomic energy, mining, agriculture, the PLI scheme etc.
“Today we have the lowest corporate tax rate in the world. Our ranking has improved in ease of doing business and labour laws have been encapsulated in 4 labour codes. All this has resulted in record FDI inflows and foreign exchange reserves,” he said.
Modi also said the Indian economy is showing a welcome pick-up in growth and the industry is making a major contribution to make this happen. “There is hardly an occasion where investors are not making statements on new opportunities available in the country. We should take up such new opportunities to take the country forward for which we need to invest in innovation and technology,” he said.
S N Subramaniam, CEO & Managing Director, Larsen & Toubro, who was also speaking on the occasion, said the country has already taken major strides in power and renewable energy sector, roads and telecom and the government must consider industry’s suggestions such as developing long-term infrastructure bonds, ensuring time bound land acquisition, and enforcement of prequalification bids.