Business

Tax stability must to invest in Indian market: FPIs

New Delhi, Aug 10 (IANS) | Publish Date: 8/10/2019 12:09:31 PM IST

The government gave a patient hearing to the suggestions coming from foreign portfolio investors (FPIs) on the new tax proposed in the Budget but is yet to take a call on either revoking or minimising the impact of the new surcharge that has already seen investors taking out over Rs 22,000 crore since July 5.

The finance ministry had called a meeting with FPIs and domestic institutional investors to hear their concerns about some of the recent changes in taxation for overseas investors. Representatives of the FPIs met the Finance Minister and secretaries in North Block.
In the meeting, FPIs sought tax stability from the Finance Minister to be able to invest and stay invested in India while seeking rollback of the tax surcharge on them.
Nandita Parkar, President, AMRI (Association of Asset Management Roundtable of India) an association of FPIs, said, “We talked about taxation, ease of doing business. We told them that India can attract 25-35 billion-dollar investment just in equity FPI flows and in order to do that to let that happen one of the conditions is a stable tax regime which is very important so that the tax does not act as a hurdle and tax needs to be predictable for investment. So that was a big issue which we discussed.”
She said quick fixes are needed for revival of stock in India.
“We made a presentation to the five secretaries and the finance minister. I feel our suggestions were listened to very very carefully.”
Asked if she hopes the government will roll back the FPI tax, she said, “I am just hoping”.
She told IANS that if the FPI tax is allowed to continue it would do a lot of damage to the investments in India by the FPIs.
Parker also said that “We brought the roll back of long-term capital gains tax issue also with the ministry as most countries don’t have it.”
The FPI association chief also said, “Apart from tax surcharge and LTCG issues, we also brought forth ease of investing in India. We told them there is need for stable tax regime for the next five years. The fear of prosecution is holding back investors.”
Leading overseas investors including Goldman Sachs, Nomura, Standard Chartered, Barclays and a host of FPIs met finance ministry officials and the minister as the government seeks to ease concerns over dwindling foreign portfolio inflows after a Budget move to increase tax surcharge on them, said three people familiar with the matter.
The meeting comes in the wake of growing concerns among FPIs over the increased tax surcharge on trusts and association of persons, a move that has been a key trigger for outflows of over Rs 22,000 crore since July.
The government had increased the tax surcharge on all the non-corporate entities which earn over Rs two crore in income annually. About 40 per cent of the FPIs would be impacted by this tax hike.
 

-Tags:#FPIs

Launched on December 3,1990. Nagaland Post is the first and highest circulated newspaper of Nagaland state. Nagaland Post is also the first newspaper in Nagaland to be published in multi-colour.

Desk:+91-3862-248 489, e-mail: npdesk@gmail.com Fax: +91-3862-248 500
Advt.:+91-3862-2482 267, e-mail:npostadvt@gmail.com

QUICK LINKS

SUNDAY POST

Join us on

© Nagaland Post 2018. All Rights are Reserved
Designed by : 4C Plus