How to End India's Tax Terrorism

A complex system is too open to abuse.

Modi's in danger of losing some of his pro-business shine.

Source: Hindustan Times/Getty Images

Under Prime Minister Narendra Modi, India’s government has gone to great lengths to distinguish itself from the supposedly anti-business policies of its predecessor. Finance Minister Arun Jaitley assured foreign companies and investors that India would no longer engage in “tax terrorism” -- suddenly levying huge retrospective tax bills on corporations such as Vodafone, which was charged with more than $2 billion in back taxes in 2012.

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