Tax concern tethers optimism of Indian finance professionals
57% of Indian treasurers say that the local tax environment is getting harder for their business.
Mumbai – Senior treasury and finance professionals in India have voiced concern that the tax environment in the country is making operating conditions harder for their business.
This was the key finding of the "Treasury Verdict" session taken by a live audience poll of senior treasury and finance professionals at EuroFinance's 10th annual conference on Cash, Treasury and Risk Management in India, held in Mumbai. The session is sponsored by J.P. Morgan Treasury Services.
A majority (57 percent) of Indian finance professionals say that the tax environment they are operating in is getting harder for their business. By contrast, only 14 percent said that the tax environment is getting easier.
The issue of tax took the gloss off what was otherwise an optimistic audience in Mumbai. Half (50 percent) of the treasury and finance professionals in attendance stated that they feel more confident in their business' prospects over the next 12 months than they did this time last year.
Katharine Morton, EuroFinance's Managing Editor, says "There is optimism among finance professionals in India when looking at their prospects over the next 12 months. Clearly the actions taken by the government in the past couple of months have helped to shift sentiment here. However, tax is still a problematic issue for business, and the government has a difficult line to tread to address the fiscal deficit without stifling growth."