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said in Goa.
Budget may be harsh on smokers as excise duty on cigarettes and tobacco products is expected to go up.
At the same time, the government may impose higher tax on people earning more than Rs 10 crore annually.
India Inc has already presented its wish list during the customary pre-budget meeting to Jaitley, while the issues of common man have been put forward by various stakeholders including trade unions and other bodies.
In order to provide clarity and improve investor sentiment to foreign investors, there would be reference to retrospective tax amendment in Budget.
The foremost problem that the minister would have to deal with is the retrospective tax amendment issue. The Vodafone case is stuck in arbitration and not much can be done to resolve the impasse as the amount involved is Rs 20,000 crore.
The Modi government is expected to make a general statement of intent to clarify its position with regard to retrospective tax amendment with a view to ensuring a stable tax regime. This would help bothĖ the government as well as the investors.