These statements by the PM came after both Houses of Parliament cleared amendments to the Income-Tax Act and Finance Act, 2012 to ensure that no demand shall be raised in connection with retrospective tax for any indirect transfer of Indian assets if the transaction had been undertaken before May 28, 2012.
Prime Minister Narendra Modi, at the annual session of the Confederation of Indian Industry (CII) on Wednesday, said the decision to end retrospective taxation would strengthen trust between the Government and industry. He also said that the Government is pushing the boundaries on reforms and that its recent legislative measures will help small investors and depositors.
“Recently, fixing mistakes of the past, we have decided to end retrospective taxation. The way in which this is being appreciated by the industry makes me believe that this will lead to the trust between industry and Government being strengthened,” Modi said at the CII virtual meeting.
These statements by the PM came after both Houses of Parliament cleared amendments to the Income-Tax Act and Finance Act, 2012 to ensure that no demand shall be raised in connection with retrospective tax for any indirect transfer of Indian assets if the transaction had been undertaken before May 28, 2012.
Modi stressed that the Government was pushing the boundaries in taking bold decisions and recent reforms have been done with conviction. “We have taken bold decisions. Reforms continued even during the pandemic. The Government is implementing reforms not out of compulsion but out of conviction,” he said while speaking on the theme ‘India@75: Government and Business Working together towards Atmanirbhar Bharat’.
Also read: Lok Sabha Passes Law To Nullify Retrospective Tax
On the topic of growth of start-ups, the Prime Minister said that, “India has 60 unicorns, 21 of which reached that status in the last few months, as opposed to possibly three-four unicorns seven-eight years ago. Investor response has been tremendous for start-ups and this signals that India has extraordinary opportunities for growth.”
Modi also said that the Government is ready to take political risks in the interest of the nation and push the boundaries of reforms even as he sought industry inputs on what more can be done. He stressed that the Goods and Service Tax was stuck for so many years only because previous governments could not muster up the courage to take political risks.
Modi urged the industry to boost investment and take more risks to ensure the success of the Atmanirbhar Bharat mission. “Industry needs to increase its natural risk-taking tendency. We will have to take new and difficult roads for the success of the Aatmanirbhar Bharat mission,” the PM said.
“The success of Aatmanirbhar Bharat will require a manifold increase in investment in R&D, which is not possible through Government efforts alone. It requires major participation from industry,” said the Prime Minister.
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