Chandigarh, Jan 24 (PTI) Prime Minister Narendra Modi today announced that the controversial retrospective taxation is a thing of the past and this chapter will never be opened again in India, a statement aimed at addressing the concerns of foreign investors over predictability in the tax regime.
"I am for stable governance and predictable taxation system. The government is taking various steps to ensure this stability. This government is known for stable and predictable tax regime," he said. In this context he referred to the Retrospective tax imposed in 2012 through amendments in the Income Tax Act, a step which had led to an outcry and anxiety among the investors, particularly the foreign ones.
"Retrospective tax is a matter of past. That chapter will not be opened again. We are ensuring that neither this government nor the future governments can open this chapter," Modi told the India-France Business Summit. "Whosoever makes investment in the country should know about the taxation system in the country over the next five years, 10 years, 15 years," he said.
The French President, who began his three-day visit from here today, is accompanied by a large delegation of CEOs. Inviting French companies, especially those in the defence sector to manufacture in India and take advantage of low costs involved, the Prime Minister said India provides huge business opportunity for them.
"India wants to enter the field of defence manufacturing. ... I assure French companies present here, especially in the field of defence manufacturing that we can do a lot in the area of defence manufacturing."