The Indian government will put to rest pending tax disputes with companies in the coming days as the it strives to make the country an attractive investment destination, finance minister Arun Jaitley said on Thursday.
In a big relief to Foreign Institutional Investors, the government recently accepted recommendation of a high level panel that minimum alternate tax (MAT) should not be imposed on overseas portfolio investors on transactions held earlier to April 1, 2015. The Income Tax Act may be amended in the winter session of Parliament to give effect to this change and bring an end to litigations in this regard.
Highlighting the government’s initiatives to boost economic activity, Jaitley said low oil prices has helped it spend more on infrastructure and agriculture sectors.
Jaitley, however, said kick-starting manufacturing sector is the greatest challenge as well as the opportunity to boost economic growth.
“Now, a number of them have been put to rest and we are trying over the next few days itself so that many others can be put to sleep either by a judicial resolution or an executive resolution,” he said while addressing the India Economic Convention here.
Stating that the system of allocation of natural resources has been rationalised and the controversies put to rest, Arun Jaitley said there are many other reforms in the pipeline.
While the GST reform is stuck because of political reasons, the government is trying to put on track a bankruptcy code, dispute resolution in major contracts, expeditious arbitration procedures and a public procurement law, he said.
“In a situation where there is turmoil almost by the day as far as global markets are concerned, we are trying to make the fundamentals of our own economy strong so our ability to resist these changes can substantially improve,” he said.
The Finance Minister impressed upon the need to attract more investments for the manufacturing sector.
“Without investment, there is going to be no additional economic activity,” he said, terming improving ease of doing business and resolution of tax disputes as “work in progress”.
With PTI inputs