New Delhi: Wooing investors, finance minister Arun Jaitley on Sunday voiced the Narendra Modi government’s bid to provide a “reasonable and rational tax policy”, and promised that it will not be “ultra-aggressive” with taxpayers.
On crucial reforms in taxation, Mr Jaitley said he is in the final stage of talks with state leaderships on GST and indicated he could move the amended GST Bill in the coming Winter Session beginning November 24. The minister said the government was planning to lower its stake in public sector banks to 52 per cent in order to meet the Rs 3 lakh crore capital requirement. He also said the government will go ahead with crucial amendments to the Land Acquisition Act even if the Opposition does not support these changes.
Mr Jaitley said he hoped to get parliamentary approval in the Winter Session on the long-pending Insurance Laws Amendment Bill, that seeks to raise the FDI cap in this sector to 49 per cent. “Have always believed that some reforms are easily possible. I have clearly prioritised most of them. For the next few months, we have our plates reasonably full,” Mr Jaitley said at India Global Forum 2014, organised by IISS and Observer Research Foundation.
The finance minister said as India’s economy was facing challenges, “a reasonable and rational tax policy (is needed). It can’t be ultra-aggressive with taxpayers.” He added: “We have realised that one of the greatest challenges we have is the manufacturing sector. The economy had touched a new low, and the manufacturing sector is itself is delicately poised in India. We have to eventually make India a hub of low-cost manufacturing.”
