Zee Media Bureau
New Delhi: Talking about retrospective taxation, Arun Jaitly has said that it was a "defining moment" for Indian economy as investments dried up after that.
While replying to a debate on the budget in Rajya Sabha on Thursday Jaitley said, "Retro tax was a retrograde step. It drove investors away. Investments dried up. During the last phase of UPA, I was hoping against hope that you will untie the knot, but you left it for us to untie and it is a difficult knot to untie."
He stressed that low taxation is good for the economy and he has tried to pursue it in his budget with a view to giving a fillip to manufacturing sector.
He also stressed on the need to stop domestic investors moving out. Referring to some recent positive economic data, he said "these are initial indicators. It is from this that we have to pick up".
Jaitley said he is moving on the premise that "low taxation is good because people want to buy goods, not taxes".
With PTI Inputs
First Published: Friday, July 25, 2014, 10:08