{"id":125267,"date":"2021-08-11T19:45:05","date_gmt":"2021-08-11T14:15:05","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=125267"},"modified":"2021-08-12T11:40:01","modified_gmt":"2021-08-12T06:10:01","slug":"the-repeal-of-the-retrospective-tax-shows-modi-government-means-business-on-reforms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-repeal-of-the-retrospective-tax-shows-modi-government-means-business-on-reforms\/","title":{"rendered":"The repeal of the retrospective tax shows Modi government means business on reforms"},"content":{"rendered":"<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/the-repeal-of-the-retrospective-tax-shows-modi-government-means-business-on-reforms-7447879\/\" target=\"_blank\" rel=\"noopener\">The\u00a0Indian Express<\/a><\/p>\n<p><strong>Relevance:<\/strong> This article explains government actions to boost investor confidence<\/p>\n<h5><strong>Synopsis:<\/strong><\/h5>\n<p>Along with the taxation Laws (Amendment) Bill, India has taken many steps to boost investor confidence.<\/p>\n<h5><strong>Introduction:<\/strong><\/h5>\n<p><span data-contrast=\"auto\">The government has recently introduced the Taxation Laws (Amendment) Bill, 2021, in Parliament.<\/span>\u00a0<span data-contrast=\"auto\">The bill seeks to nullify the contentious\u00a0<\/span><b><span data-contrast=\"auto\">retrospective tax law\u00a0<\/span><\/b><span data-contrast=\"auto\">by amending the<\/span><b><span data-contrast=\"auto\">\u00a0Income Tax (IT) Act<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><b><span data-contrast=\"auto\">of 1961 and the Finance Act of 2012.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>This move will boost investor confidence.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr style=\"background-color: #f2e9f1;\">\n<td style=\"width: 100%;\">Read more: <a href=\"https:\/\/forumias.com\/blog\/retrospective-taxation-and-the-taxation-laws-amendment-bill-explained-pointwise\/\" target=\"_blank\" rel=\"noopener\">Retrospective taxation and the Taxation Laws (Amendment) Bill \u2013 Explained, pointwise<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>The other moves of government to boost investor confidence:<\/strong><\/p>\n<p>India is enjoying one of the best years of foreign direct investment and foreign portfolio investment.<\/p>\n<ul>\n<li>For many decades, <strong>India had one of the highest effective corporate taxes (at 27%)<\/strong> in the world. But recently, the government brought the effective corporate taxes to near world competitive levels.\n<ul>\n<li>An <strong>effective tax is simply the ratio of the tax paid to income earned<\/strong>. The difference between the stated nominal and the actual effective arises because of legal tax deductions.<\/li>\n<\/ul>\n<\/li>\n<li>After having one of the highest real policy rates in the world, the RBI has introduced a trend of having a competitive real policy rate.<\/li>\n<li>The Taxation Laws (Amendment) Bill will directly influence Indian sovereign (and corporate) bonds to become part of global bond indices. This will result in reducing the cost of borrowing for governments and corporates.<\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr style=\"background-color: #f2e9f1;\">\n<td style=\"width: 100%;\"><strong>Read more<\/strong>: <a href=\"https:\/\/forumias.com\/blog\/the-sovereign-right-to-tax-is-not-absolute\/\" target=\"_blank\" rel=\"noopener\">The sovereign right to tax is not absolute<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The Commerce Department&#8217;s High Level Advisory Group committee report \u00a0was published in September 2019. That report had argued for several reforms, including some major reforms in the capital market. It is time for government to implement that and increase further investor confidence.<\/p>\n<p>All this will result in more capital and more investment \u2014 both of this will result in higher growth.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0The\u00a0Indian Express Relevance: This article explains government actions to boost investor confidence Synopsis: Along with the taxation Laws (Amendment) Bill, India has taken many steps to boost investor confidence. Introduction: The government has recently introduced the Taxation Laws (Amendment) Bill, 2021, in Parliament.\u00a0The bill seeks to nullify the contentious\u00a0retrospective tax law\u00a0by amending the\u00a0Income Tax (IT)&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/the-repeal-of-the-retrospective-tax-shows-modi-government-means-business-on-reforms\/\">Continue reading <span class=\"screen-reader-text\">The repeal of the retrospective tax shows Modi government means business on reforms<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8778,8947,8788,8399,8948],"class_list":["post-125267","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-important-international-institutions","tag-international-disputes","tag-mobilisation-of-resources","tag-retrospective-taxation","tag-taxation-laws-amendment-bill-2021","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704660464},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/125267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=125267"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/125267\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=125267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=125267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=125267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}