Crucial to follow tax-friendly regime, says Chidambaram

Finance minister P Chidambaram has said that it was crucial to follow a tax-friendly regime and non-adversarial tax administration to raise the tax to GDP ratio in the country. HT reports.

Finance minister P Chidambaram has said that it was crucial to follow a tax-friendly regime and non-adversarial tax administration to raise the tax to gross domestic product (GDP) ratio in the country.

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While addressing the 63rd batch of IRS (Customs and Central Excise) officers, he underlined the need to have a fair and just dispute resolution mechanism.

The minister has already promised to bring in a stable tax regime to boost investor confidence.

Certain tax measures especially the General Anti-Avoidance Rule (GAAR) have proved to be dampeners for the corporate India while sparking fear among global and domestic investors, who say this would choke foreign investment into the country.

Chidambaram said good governance and correct application of resources would take India into being a middle income country.

He also said nation building through affirmative action policy and nurturing talent is critical.