PM assures retrospective tax won’t return, inks 16 deals
CHANDIGARH: Prime Minister Narendra Modi told a delegation of French businessmen accompanying their head of state that the controversial retrospective tax practice will not make a return.
His assurance came as officials from both sides signed 16 deals spanning sectors such as renewable energy, urban development and defence on Sunday.
“Neither by this government nor by any future government. We will make arrangement for this”, the PM said, pitching the Indian economy as a stable bet for foreign investors.
“Whosoever invests in the country should know about the taxation system in the country over the next five, 10 and 15 years,” he said at the business summit, citing 40% jump in foreign direct investments in India as an indication of his government being on the right track. Among the agreements signed by Indian and French officials was a pact between the Airbus Group and Mahindra for the manufacture of helicopters and three MoUs under the ‘Smart City’ theme.
The Memoranda of Understanding (MoUs) were signed in the presence of PM Narendra Modi and French President Francois Hollande, who will be in India for two more days including his attendance as the chief guest of the Republic Day ceremony in New Delhi on Tuesday. Three MoUs were signed under the ‘Smart city’ theme for city-specific urban development between French Development Agency (AFD) with the state governments for the cities of Chandigarh, Nagpur and Puducherry.
The aim of the MoUs is to provide specific technical assistance on urban development experts from the French government’s programme.