Clarity on retrospective tax will help investments in India: UK IBC

More certainty, predictability and clarity regarding retrospective taxation would help companies from the UK to invest more in India, Richard McCallum, Managing Director, UK India Business Council said here on Friday.

“I think that if there was more clarity, certainty, predictability around retrospective taxation and (resolving) the Vodafone issue that would help the UK companies make their investment decisions in India,” McCallum told IANS over a telephonic interaction.

He, however added: “…the ease of doing business, operating environment in India as we know is significantly improving…and the UK companies are making the most out of it.”

Vodafone Plc last year said an international arbitration tribunal would begin trial on Vodafone’s challenge to India’s retrospective legislation to seek Rs 22,100 crore in taxes.

On the issue of reported immigration problems faced by Indian proffessionals in the UK, McCallum said, the British High Commission in India has the largest visa issuing network in the world.

“Despite what you might read in the press… number of students enrolling in higher education courses (in UK) is increasing now,” he added.

Regarding trade prospects between the two countries after Brexit, McCallum said: “I think Brexit presents opportunities, in regard to future trade agreements and addressing of non-tarriff barriers and so on.”

India and the UK have a strong relationship and it will continue to be very strong after Brexit, he added.

McCallum is currently in India to promote the International Business Festival 2018 to be held in June. He is accompanied by Ian McCarthy, Director, International Business Festival and Christine Vaudrey, Head of International for the festival.

On participation of Indian companies in the the upcoming event to be held in Liverpool, Britain, Ian McCarthy said: “We think that 20 delegates will come from India to the the festival.”

The festival begins on the June 12 and the delegations would focus on some of the specific sectors that the festival is promoting like, manufacturing, health, urbanisation among others, he said.

This would be the third edition of the business festival, and is held every two years in Liverpool, Christine Vaudrey, Head of International, International Business Festival said.