Promising an easier business environment for global investors, Prime Minister Narendra Modi on Monday assured business leaders that his team was working on setting up a predictable long-term tax regime ie Goods and Services Tax (GST).
“Don’t worry…GST will happen, it will be a reality soon. Retrospective tax is a matter of the past. My government will continue to work towards establishment of a predictable long-term taxation regime,” Modi said, addressing the gathering at Saudi Arabia’s Chamber of Commerce in Riyadh.
The retrospective tax he was talking about was in a reference to recent disputes involving Indian tax authorities and multinationals like Cairn and Vodafone.
Inviting Saudi businesses to come and invest in India in sectors like railways, defence and energy, Modi however, refrained from giving any specific timeframe.
Modi said his Government has opened up various sectors to foreign investment and India stands out as a “beacon of hope” amidst global economic slowdown.
“World Bank has upgraded India by 12 ranks in Ease of Doing Business. I expect in the next review, our ranking will improve further because we have made a lot of administrative reforms.
GST is currently stalled in the Rajya Sabha, where the ruling Bharatiya Janata Party-led National Democratic Alliance (NDA) doesn’t enjoy a majority. The Government hopes the next biennial elections in the Rajya Sabha will give it enough seats in the upper house to pass the GST Bill.