Speaking at the Bloomberg Global Business Forum on September 25, India’s Prime Minister Narendra Modi said that the government will further ease the tax regime for businesses by introducing tax on equity investments in compliance with the global tax regime.
“India will not shy away from taking the toughest decisions. We will undertake necessary modifications on a regular basis on tax-related laws.” Modi said. This step is expected to serve as a golden opportunity for the global investors to partner with India, he added.
The Prime Minister also noted the multiple tax modifications introduced by the Indian government including the recent slashing of corporate tax rates.
Earlier this month, India’s Finance Minister Nirmala Sitharaman announced slashing of corporate tax rates to 22% for existing domestic companies and 15% for new domestic manufacturing companies.
The annual economic survey for 2018-19, has also called for optimal tax policy for startups so that it can aid the innovative investments in the Indian economy. The survey noted that growth in the new economy cannot be fostered without an ecosystem that rewards innovation and entrepreneurship.
“A road map for qualitative and quantitative leap in India’s growth story has been identified. We have set a target of making India a $5 Tn economy. To achieve this target, we have the capability, courage and conditions with us,” Modi added.
Further, the prime minister also spoke about the importance of social media in enabling good governance. “Social media can be used in a positive manner for good governance as information can be received from people living in remote areas,” Modi added. However, he also expressed concern about the rise of fake news on social media platforms and said, “people should first check when they receive the news on social media before forwarding it to others.”
Meanwhile, the Indian government has also been pushing for linking of Aadhaar cards with social media accounts to help fight cybercrime, terrorism and fake news. The government had argued that the problem of fake news can be solved if social media users can be identified.
Last month, the Supreme Court of India had warned the government about the privacy implications of any potential move forcing users of social media platforms to link their online accounts with their Aadhaar.