This was the moot question discussed in one of the TV debate. Since, the finance Minister introduce new amendments regarding 'Retrospective Tax', every single day media giants crying foul. They just try to convince the government (on whose behalf?!? I hope Indians are that smart to make their assessment) that retrospective tax will hamper our position as an investment friendly country and FDI flaw will stop pouring in. I believe its premature to make out investors mind. After all, Investors don't invest only on the basis of tax system of the country. There is no doubt that the question here is more about 'amendment' and 'retrospective tax'. It is indirectly associated with 'Rule of Law' issue. In terms of Legal issues, it is the major one.
There are more issues are attached which alarming the investors about Indian state governance. Non - Compliance of Bilateral Investment treaty(BIT), rampant Corruption, 2G case, political instability. and many more. But, the fact still remains that India has offer more than any democratic country. The 'Dabhol Power Plant(Enron) Case' was the first celebrated case where BIT was invoked and International arbitration was commenced. Though, International Arbitration in Dabhol case was not at all a good experience for Enron; but, its altogether a different issue.
Indeed, Investors will take this amendments seriously and they may consider it as one of the 'negative' factor for why - not-invest- in- India. They dont read between the lines they will analyse it and they will reach to much wider question of 'Rule of Law'. The Supreme Court has already decided the case in favour of Vodafone now what prompted the finance minister to make an amendment which will ultimately nullify the Supreme Courts' Judgement. The situation itself speaks about the oblique motive of government. Though, The amendment is constitutionally and legally valid and there were more than 5 instances when retrospective amendments were introduced. Although, It is uncalled for but not unusual in India.
Moral of the story: Retrospective Tax..Speculative Media......Introspection time for Government.....Wandering Investors...!!!
No comments:
Post a Comment