India should have predictable tax system: chancellor Osborne
03 Apr 2012
Last month's Budget outlined proposals that would allow authorities to make retrospective tax claims on overseas deals, such as Vodafone Group Plc's $11.5 billion acquisition of India's Hutchison Essar in 2007.
The UK government has taken up the retrospective taxation proposal concerns with Finance Minister Pranab Mukherjee.
In a joint statement issued after the meeting UK Chancellor George Osborne had with Indian officials, both sides announced an agreement to improve tax compliance and decrease tax evasion.
Speaking exclusively to CNBC-TV18, UK chancellor George Osborne says India should have a predictable tax system but added he is not going to threaten retaliatory action over the proposed amendment.
CNBC-TV 18 shares its exclusive interview with domain-b
What are your concerns and apprehensions to the proposed amendment?
Britain and India have a very good, strong and warm relationship. We can be candid because we are friends and my own personal relationship with Mukherjee is a strong one because he is a man of real integrity. I have raised our concerns about the recent Budget in particular the suggestion on the retrospective taxation of certain investments into India.
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