India can't be nor will be treated as a 'tax haven': Jaitley

Finance Minister Arun Jaitley on Monday said the NDA Government is determined not to allow India to be treated as a 'tax haven' and added that every legitimate tax demand cannot be seen or considered as an act of tax terrorism.

"Every legitimate tax demand cannot be considered to be tax terrorism. We are targeting tax stability but, India should not be treated as a tax haven," Jaitley said in his address at conference organized by the Confederation of Indian Industry (CII).

"This year started with an uncertainty, saw a lot of excitement and now in the language of cricket, the 'slog period' begins. Governments have an increased responsibility, and a part of that responsibility is that you maintain a reasonable pace and have clarity about direction and don't allow yourself to be brought down by transient objections," he added.

He further said that previously the government's credibility with regard to India as an investment destination and ability to take decisions was reasonably low.

"Our credibility with regard to India as an investment destination and ability to take decisions was reasonably low. Earlier decisions which are long pending are relatively very clear and therefore, the direction of the road map is very clear. The first decision was that you pick up sectors one by one and you decide a policy decision with regard to opening them out," the Finance Minister said.

"The second challenge was that merely by opening the doors you invite people to come in, but to persuade them to come in you have to work a lot. Be it direct or indirect taxes, you have to simplify your procedures and over a period of time rationalize your rates and bring them down," he said.

"Broadly, there has been a consensus as far as goods and services tax is concerned. When the Parliament reassembles, I intend to move constitution amendment for its passage. The next stage would be to get approval of states. We are trying to strengthen economic federalism and states have been hugely empowered," he added.