US biz wants Geithner to prod India on tax law
US business groups want the US to put pressure on India to not go through on some tax changes that they said would adversely impact foreign investments in India. HT reports.business Updated: Apr 19, 2012 20:18 IST
US business groups want the US to put pressure on India to not go through on some tax changes that they said would adversely impact foreign investments in India.
The US Chamber of Commerce, the US-India Business Council and the Financial Services Forum on Tuesday wrote to treasury secretary Tim Geithner, urging him to bring this up at his meeting with finance minister Pranab Mukherjee, who is here for the annual meetings of the IMF and the World Bank group.
The tax change popularly known now as the Vodafone case proposes to tax overseas corporate deals with retrospective effect. There has been some disquiet in the US business community over this proposal and visiting Indian officials have found themselves addressing it every meeting.
Competition Commission of India chairman Ashok Chawla, who was here earlier this month, had encountered a flurry of questions on this issue.
“What is apparent is that political power is devolving to strong state leaders, and the vacuum at the Centre is allowing forces in government to move on issues that are harmful to India’s investment climate,” the outgoing USIBC chairman Harold Terry McGraw III, said in a letter to Mike Froman, deputy national security adviser to the US President, according to PTI.