Chidambaram unveils roadmap to boost economy, investment

In an apparent break from the recent past, he has directed a review of tax provisions that have a retrospective effect in order to find a fair and reasonable solution to pending as well as likely disputes between the tax department and assessees concerned.

Making a detailed statement, Chidambaram, who took charge of the finance portfolio last week, also made an obvious reference to recent controversies over retrospective amendment to the Income Tax Act and GAAR (General Anti Avoidance Rules) provisions in the Budget of his predecessor Pranab Mukherjee, Chidambaram.

"Clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution and an independent judiciary will provide great assurance to investors. We will take corrective measures wherever necessary," he said.

The Minister said that government will work with the RBI to moderate inflation in the medium term.

Noting that current interest rates are high, he said, "sometimes it is necessary to take carefully calibrated risks in order to stimulate investment and to ease the burden on consumers. We will take appropriate steps in this regard."

Making it clear that his uppermost duty was to regain the confidence of all stake holders, he said, "obviously, wherever necessary, our policies have to be modified or fine-tuned to meet the expectations of different stakeholders." MORE