Will streamline taxation: Finance Ministry
The retrospective tax laws have adversely impacted India's image globally as an attractive investment destination, sources said.
New Delhi: The finance ministry is contemplating removing certain “unwanted discretions” as part of an exercise to streamline taxation structure and improve the country’s image as attractive investment destination, sources said.
The objective of the exercise, they said, was to come out with “clear cut guidelines” on taxation with a view to prevent controversies pertaining to retrospective amendment of tax laws. The stress will be on transparency, predictability and stability in the Indian taxation system.
All eyes would be on the finance minister Arun Jaitley who is presenting the Union Budget on Monday. In the last Budget, he had announced phased reduction in corporate tax to 25 per cent from the current 30 per cent and elimination of tax exemptions to companies.
Regime of exemptions has led to pressure groups, litigation and loss of revenue, and also leaves room for discretion (which many times have lead to controversies).
The retrospective tax laws have adversely impacted India’s image globally as an attractive investment destination, sources said.