Retro tax to stay!
It appears to be true that though parties fight out tooth and
nail in the elections, when it comes to policy decisions at least
at the Federal Government level, policies introduced by the
previous Government is not reversed by the successive Government.
The reason being, it could be any party ruling the country but they
are all called as 'Indian Government'. The testimony is the
preservation of the infamous retrospective amendment to section 9
and other corresponding sections.
The BJP led Government has preferred fiscal consolidation to
foreign investors' sentiment on the retrospective amendments
introduced in Finance Act, 2012. Now that the disputes due to these
amendments are before various fora including international
arbitration, the Government seems to have felt that let the
proceedings take their own course!
