India consigns its tax time-machine to the past
The case of the retroactive tax illustrates the country’s strained relationship with foreign investors
WHEN INDIA introduced a retroactive tax on the sale of shares in foreign companies with domestic assets in 2012, the measure was reviled by foreign businesses and decried by the Bharatiya Janata Party (BJP), then in opposition, as “tax terrorism”. So foreign investors had reason to cheer on August 5th, when the BJP government said it would repeal the law. The reversal illustrates the tug-of-war the country has long faced—between wanting to invite foreign investment into the country and resenting the legal tussles it brings.
This article appeared in the Finance & economics section of the print edition under the headline “Bygones are bygones”
Finance & economics August 14th 2021
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