India Not Considering Tobin Tax on Capital Flows, Subbarao Says
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India has no plans to impose the so-called Tobin tax on foreign capital inflows, Reserve Bank of India Governor Duvvuri Subbarao said, adding the position may be reviewed in future.
“As regards a Tobin type tax, we have not so far imposed nor are we contemplating one,” Subbarao said in a speech in Zurich yesterday, a copy of which is posted on the central bank’s website. “However, it needs reiterating that no policy instrument is clearly off the table and our choice of instruments will be determined by the context.”