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Tuesday, August 7, 2012

PC roadmap to boost biz

Finance Minister P. Chidambaram
In a bid to reverse the downturn in the economy and give fillip to investment, new finance minister P. Chidambaram on Monday unveiled a roadmap to fine-tune existing policies. In a statement, he indicated 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.

Reversing the recent policy initiatives, the finance minister 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.

Mr Chidambaram, who took charge of the finance ministry 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 for 201213.

Clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution as well as an independent judiciary will provide great assurance to investors. We will take corrective measures wherever necessary,“ the statement said, adding that the government would work closely with the RBI to moderate inflation in the medium term.

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