America
Jaitley assures US investors of a stable policy regime
By
By Arun Kumar Washington, June 21
Indian Finance Minister
Arun Jaitley is wooing American investors with twin assurances -- more
economic reforms and a stable policy regime with no intention to
legislate or apply laws retrospectively.
Jaitley has held talks
with US Treasury Secretary Jacob Lew, Commerce Secretary Penny Pritzker
and US Trade Representative Michael Froman in Washington and met
investors, including some CEOs on a one-on-one basis, and New York.
In
his interactions with investors, the Finance Minister told reporters
here Saturday, he had explained the progress on the reforms front since
the Modi government came to power last year and all those in the
pipeline.
"The government is determined to continue on the reform
path to give a further boost to the economy," he said outlining
"several game changing steps" including opening up, structural changes,
subsidy rationalisation and direct taxation reform.
Goods and Services Tax (GST) regime was "probably the most important tax reform," undertaken by the Modi government, he said.
Jaitley,
who is headed to San Francisco Sunday to meet more investors, said he
was "carrying back a clear message that investors need a stable policy
regime as unpredictability is never investor friendly."
"In an
otherwise troubled times of the global economy, India clearly is a
bright spot," with an 8 percent growth target this year, said Jaitley.
"In the current global climate that makes India a reasonably attractive destination."
On
retrospective taxes, an issue that he faced at practically every event,
Jaitley held out an assurance that the Modi government does "not intend
to legislate retrospectively or apply laws retrospectively."
Describing
tax notices issued to some foreign firms to pay taxes retrospectively
under a law passed in 2012 by the previous government as a "legacy
issue", Jaitley said he hoped "to put a quietus to the whole issue" with
the expeditious disposal of pending cases by the courts.
In his
talks with US officials, the minister said he had raised India's concern
about reaching a Totalisation Agreement "so that our professionals
could get the benefits which have otherwise been denied to them."
Such an agreement would help Indians working in the US to avoid double taxation of income with respect to social security taxes.
On
their part, the US had made references "to their concerns with regard
to intellectual property regulations in India," Jaitley said.
Other
topics of discussion included continued efforts to reach a Bilateral
Investment Treaty, increased trade cooperation and preparations for the
India-US economic dialogue.
(Arun Kumar can be contacted at [email protected])