Create environment to bring back black money: PM

As his government faces criticism over the black money issue, PM Manmohan Singh says there is a need to create an environment at home where Indians who have stashed illegal money abroad have an "incentive" to bring back the funds.

Updated: Nov 05, 2011, 14:50 PM IST

New Delhi: As his government faces criticism
over the black money issue, Prime Minister Manmohan Singh says
there is a need to create an environment at home where Indians
who have stashed illegal money abroad have an "incentive" to
bring back the funds.

Singh made a pitch for this strategy while stating that
India is a land of opportunity and that therefore it is no
longer necessary for people with surplus money in India to
think of greener pastures outside.

"We have to create an environment, in which our people
would have, themselves, an incentive to bring back this money
at home; that India is a land of opportunity; that, therefore,
it is no longer necessary for people with surplus money in
India to think of greener pastures outside," he told reporters
in Cannes last evening at the end of the sixth Summit of the
Group of 20 leading economies.

Singh thought this is the only secure, long-term way to
create an environment in which the country will discourage the
flow of such money to tax havens abroad.

The Prime Minister`s comments came in response to a
question on how effective will be the G20 endorsement of
India`s call for increased banking transparency in bringing
black money back home.

In a major gain for India, the G-20 Summit in its
communique asked tax havens to adopt prudential norms for
sharing of tax information to check money laundering and
funding of terror failing which it threatened action.

The grouping, which accounted for 85 per cent of the
world`s output, also warned of action against jurisdiction and
entities that will not cooperate in ensuring transparency in
tax frauds.

"We underline the importance of comprehensive tax
information exchange and encourage work in the Global Forum
(of OECD) to define the means to improve it," the communique
said.

PTI