Noted economist Parthasarathi Shome, who reviewed the recent changes in India’s direct tax laws, has been appointed as the adviser to finance minister P Chidambaram in the rank of minister of state, the government said on Thursday. Shome’s appointment is co-terminus with Chidambaram’s term in the North Block.
This would be Shome’s second stint as an adviser to the finance minister, in which capacity he had served for four years from 2004. Before his recent stint as the chief executive at Indian Council for Research on International Economic Relations (ICRIER), Shome had an international assignment as the chief economist with Her Majesty’s Revenue & Customs (HMRC), United Kingdom in the three years from January 2008.
Shome’s review of the General Anti-Avoidance Rules (GAAR) and the changes in law regarding indirect transfer of Indian assets introduced in Union budget 2012-13 was keenly watched by the business community for their impact on their future investments.
Shome had suggested a more pragmatic and investor-friendly approach in his recommendations reflecting certainty and predictability in tax laws.