Legitimate demands not tax terrorism: FM

Finance Minister Arun Jaitley on Monday minced no words in saying there were challenges ahead for reforms in the tax regime. 

Referring to the controversial minimum alternate tax (MAT) demand on foreign institutional investors (FIIs), Jaitley said taxes would need to be paid where the demand was right, while wrongful demand would go into litigation.

“We are targeting tax stability but India should not be treated as a tax haven,” said Jaitley. 

Speaking at an event organised by industry body Confederation of Indian Industry (CII), Jaitley said the government was open to reasonable suggestions on the compliance window and black money provisions. “We will consider all reasonable suggestions on black money. However saying disclosure of foreign assets is tax terrorism is out of line.”

Jaitley also said governments globally were moving towards transparency on taxation; with G-20 provisions of automatic exchange of information, compliance and disclosures will only increase.

The reformative national and Goods and Services Tax amendments would be considered in the next half of the Budget session, he said.