Withdrawal of enhanced surcharge on FPIs result of blackmailing by foreign investors: SJM

RSS-affiliated SJM said withdrawal of super-rich surcharge on foreign investors is a result of "an act of blackmailing" of the government by overseas investors, and if the situation permits the Centre should reimpose this tax after some time.

The remarks of the Swadeshi Jagran Manch, an economic wing of the BJP's ideological parent RSS, came after Union Finance Minister Nirmala Sitharaman announced to roll back the enhanced surcharge, imposed on foreign portfolio and domestic investors in the 2019-20 Budget, as part of a slew of measures to boost sagging economic growth.

"Under the circumstances where the country's economy is dependent on investment from foreign investors or foreign portfolio investors... they always try to blackmail you. Removal of the tax should be seen in that direction," SJM co-convener Ashwani Mahajan said.

"The SJM sees it as a result of an act of blackmailing by foreign investors," he said, adding if the situation permits the "government should reimpose the tax after a gap."
He also suggested that in the long term, the government should substitute imports to minimise its foreign exchange requirement "so that the future dispensations are able to take decisions in the best interest of the country as they had done earlier in this case, but they were pressured."