Ahead of the highly anticipated Union Budget 2015 to be unveiled by the Modi government on February 28, the Ministry of Finance has stressed that the tax regime will be kept simple and predictable, which will come as a major relief for the global investor community and may lead to a flurry of investments into Asia's third biggest economy, accelerating growth.
"Our intent is that at the end of the day, our tax and regulatory regime will be at parity with those elsewhere in the world. In fact, it will be the best in the world," Minister of State for Finance Jayant Sinha said, the PTI reported.
"We will ensure that capital can come in and get out of the country and also that it can get deployed here with confidence and clarity", he added.
Over the years, a complicated and an unfriendly tax structure has discouraged many major global investors from undertaking big-ticket projects in India, hindering the country's economic growth.
In the Budget, investors are expecting the government to provide greater clarity on GAAR and the issue of retrospective taxation.
Making its intent clear that the NDA government is an investor and business friendly government, the centre in December gave the nod to the long pending Goods and Services Tax (GST) which will simplify the country's indirect tax structure apart from bolstering productivity and economic growth.