In the light of Nokia-Microsoft deal, Cabinet committee of Economic affairs met today and decided a major reform in the way tax could be collected in India. The cabinet today, decided to levy a prospective tax on all companies which are doing mergers and acquisition all around the world.
After seeing the $7.7 billion dollar deal, few of the cabinet ministers were off the view that many companies around the world are sitting on lots of cash to spare. India could certainly do something better with it. Ministers argued that this money would be used in keeping out petrol pumps open till midnight.
Talking specifically about Nokia, Sibal said “Who buys Nokia these days? It is us Indians. So why can’t we tax these guys.” However, when Nokia India CEO was asked the question of prospective tax reform, he said “we are currently in talks with a high level government officer, Mrs Nira Radia. She has been assigned to us as a special envoy to sort out our differences”.
He claimed, “we have made an offer that something they can’t refuse”. However, Sibal denied receiving any such offer but added that he and his colleagues have complete confidence in Mrs Nira. He believes that Mrs Nira will live up the expectation and will cause Zero-Loss to the nation in this deal.
Government has laid extensive plan to gather $100 billion dollar within the next 100 days. Companies like Apple, Google. Facebook, Tesla and SpaceX are already been vetted by the government. Many major economists have already termed this reform as “game changer” idea for India.
Minster of Information and Broadcasting, Manish Tiwari added that the money extracted out of these companies would be a big blow to Mr. Modi and he should resign with immediately.
While introducing the prospective tax reform Finance Minister Chintambaram said, “We have decided to be very liberal in prospective policy from the first day. We have approved bringing almost all the key sectors of economy under this scheme”.
However he added that “Real state sector has been kept out of this. This was a unanimous decision made by the cabinet because lots of farmers are engaged in this activity and we don’t want complicate things for our poor farmers.“
Sibal also added that these measures will boost up the negative sentiments in the economy. He assures that this would not be a repeat of Vodafone episode and added that “appropriate measures have been taken to provide a fair mechanism for prospective tax collection and any refund of advance tax could be applied online, after the election.”
Many prominent leaders of the opposition have opposed to this bill however Leader of opposition have assured the Congress party of their full support while voting.