NEW DELHI: Finance minister Arun Jaitley called the retrospective tax a 'retrograde idea' that sent a very negative signal to the world of investors and as a result investments dried up.
Replying to the budget debate in Rajya Sabha late on Thursday night he said the government will not create any fresh controversies on retrospective tax.
He said the government recognised the Parliament's sovereign right to legislate retrospectively, but said "as a policy our government won't use that power".
He also assured the house that assessing officer will not issue new notices that they could have issued after the retrospective amendment. These cases will be referred to a mechanism created under the Central Board of Direct Taxes (CBDT).
In respect of cases that are under dispute, finance minister said there were two options, either by legislation those cases are decided against the government or litigations are contested.
"We consulted various people and finally found that the second course was a more prudent course. Legislation is a methodology of solving dispute so is legal methodology a course of solving dispute. We have left it to that," Jaitley said.
He said there were some early signs that the growth was picking up, but these were only very early signs. Similarly, inflation was showing some early signs of easing and if it eased sufficiently the Reserve Bank of India could cut rates.
Finance minister also strongly took on the charge that the government was pro business.
If you say that I have helped the businesses and this budget is pro business, yes it is. I have no hesitation in saying it is pro business, Jaitley said.
"Does it help the middle class? Does it help the neo middle class? It does. Does it help the poor? It does," FM said adding that being pro business did not mean being anti poor.
You need to be pro industry, it is only then that you will have revenues so that you are able to service the poor, FM said.
Source: www.economictimes.indiatimes.com
Replying to the budget debate in Rajya Sabha late on Thursday night he said the government will not create any fresh controversies on retrospective tax.
He said the government recognised the Parliament's sovereign right to legislate retrospectively, but said "as a policy our government won't use that power".
He also assured the house that assessing officer will not issue new notices that they could have issued after the retrospective amendment. These cases will be referred to a mechanism created under the Central Board of Direct Taxes (CBDT).
In respect of cases that are under dispute, finance minister said there were two options, either by legislation those cases are decided against the government or litigations are contested.
"We consulted various people and finally found that the second course was a more prudent course. Legislation is a methodology of solving dispute so is legal methodology a course of solving dispute. We have left it to that," Jaitley said.
He said there were some early signs that the growth was picking up, but these were only very early signs. Similarly, inflation was showing some early signs of easing and if it eased sufficiently the Reserve Bank of India could cut rates.
Finance minister also strongly took on the charge that the government was pro business.
If you say that I have helped the businesses and this budget is pro business, yes it is. I have no hesitation in saying it is pro business, Jaitley said.
"Does it help the middle class? Does it help the neo middle class? It does. Does it help the poor? It does," FM said adding that being pro business did not mean being anti poor.
You need to be pro industry, it is only then that you will have revenues so that you are able to service the poor, FM said.
Source: www.economictimes.indiatimes.com
