Businesses need only objective laws, and their honest enforcement. The laws that need “interpretation” or which are applied at whims and fancies of those tasked to enforce them scare away businesses.
The man who puts his own money on line has to know the risks involved. If the risks are known and fixed, not subject to ever changing government policies, investments boom. Otherwise money simply flies out. If there are curbs on its outward movement, it simply gets parked in banks, etc.
Government’s move to put in place a simple and stable tax regime is the most welcome step. In fact there should be a War Room in Finance ministry which should track developments in investment industry, and be ready with a clear cut tax policy for each new product from this industry.
Read the detailed report here.