FM unveils roadmap to lift economy
7 Aug 2012 6:43 AM IST
The new finance minister P Chidambaram on Monday unveiled his roadmap to boost investment and economy by fine-tuning policies to put in place a stable and non-adversarial tax regime, a possible cut in interest rates and measures to attract domestic savings and foreign capital.
In an apparent break from the recent past, he has directed a review of tax provisions that have a retrospective effect in order to find a fair and reasonable solution to pending as well as likely disputes between the tax department and assessees concerned.
Making a detailed statement, Chidambaram, who took charge of the finance portfolio last week, also made an obvious reference to recent controversies over retrospective amendment to the Income Tax Act and GAAR (General Anti Avoidance Rules) provisions in the Budget of his predecessor Pranab Mukherjee, Chidambaram.
‘Clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution and an independent judiciary will provide great assurance to investors. We will take corrective measures wherever necessary,’ he said. Making it clear that his uppermost duty was to regain the confidence of all stake holders, he said, ‘Obviously, wherever necessary, our policies have to be modified or fine-tuned to meet the expectations of different stakeholders.’
He said the key to restart the growth engine is to attract more investment, both from domestic and foreign investors.
‘Since investment is an act of faith, we must remove any apprehension or distrust in the minds of investors. We will improve communication of our policies to potential investors.’
He also said that the government will announce a number of decisions in the next few weeks to boost the mutual fund industry and the insurance sector. Chidambaram said the government was conscious that the current interest rates were high and inhibit the investors while being a burden on every class of borrowers.
‘Sometimes it is necessary to take carefully calibrated risks in order to stimulate investment and to ease the burden on consumers. We will take appropriate steps in this regard,’ he said.
Chidambaram said a reassurance on the investment climate, continued inflow of remittances, and a rise in capital inflows - FDI and FII- will bring further stability to the rate.
In an apparent break from the recent past, he has directed a review of tax provisions that have a retrospective effect in order to find a fair and reasonable solution to pending as well as likely disputes between the tax department and assessees concerned.
Making a detailed statement, Chidambaram, who took charge of the finance portfolio last week, also made an obvious reference to recent controversies over retrospective amendment to the Income Tax Act and GAAR (General Anti Avoidance Rules) provisions in the Budget of his predecessor Pranab Mukherjee, Chidambaram.
‘Clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution and an independent judiciary will provide great assurance to investors. We will take corrective measures wherever necessary,’ he said. Making it clear that his uppermost duty was to regain the confidence of all stake holders, he said, ‘Obviously, wherever necessary, our policies have to be modified or fine-tuned to meet the expectations of different stakeholders.’
He said the key to restart the growth engine is to attract more investment, both from domestic and foreign investors.
‘Since investment is an act of faith, we must remove any apprehension or distrust in the minds of investors. We will improve communication of our policies to potential investors.’
He also said that the government will announce a number of decisions in the next few weeks to boost the mutual fund industry and the insurance sector. Chidambaram said the government was conscious that the current interest rates were high and inhibit the investors while being a burden on every class of borrowers.
‘Sometimes it is necessary to take carefully calibrated risks in order to stimulate investment and to ease the burden on consumers. We will take appropriate steps in this regard,’ he said.
Chidambaram said a reassurance on the investment climate, continued inflow of remittances, and a rise in capital inflows - FDI and FII- will bring further stability to the rate.
Next Story
