Arun Jaitley’s US trip: FM to discuss tax issues and ease of investing in India

NEW DELHI: Finance Minister Arun Jaitley, who is currently on a nine-day visit to the United States, will on Monday meet representatives of pension funds and other long- term investors to allay their concerns over tax issues and ease of investing in India.

He is scheduled to meet investors, including the largest pension fund in the US, California Public Employees’ Retirement System (CalPERS), which has assets of $300 billion under management. The others on the list include California State Teachers’ Retirement System (CalSTRS), Intel Corporate Pension Plan, Los Angeles County Employees’ Retirement Association (LACERA), Medley Partners , University of California and University of Stanford.

“These investors are keen to understand government policy and initiatives regarding some of the key issues that affect long-term investments, particularly those which are illiquid in nature,” said a government official, requesting not to be named.

Some of the other issues that may be discussed include clarity on withholding tax for DTAA (double taxation avoidance agreement) eligible investors and taxexempt investors.

Agencies had quoted the finance minister stating that the government has made it clear that it will “never use the power of enacting retrospectively”. The pending cases of retrospective taxation are being resolved through the judicial process, he had said.

The finance minister, during his trip, is scheduled to meet select CEOs of top companies in the financial sector and portfolio managers from institutional investors and pension funds in the US. Jaitley is likely to detail during his discussions India’s expectations from long-term investors and strategists to support its growth agenda and the government’s focus on making India an easier destination to do business.