Sun, 23 Feb 2020

New Delhi, Aug 23 (ANI): The surcharge levied in the union budget on short-term and long-term capital gains of foreign portfolio investors (FPI) and the one on equity in the case of domestic investors have been abolished, Finance Minister Nirmala Sitharaman announced on Friday restoring the pre-budget position.

The surcharge on foreign portfolio investors has been withdrawn to stimulate capital inflows and investment.

"In order to encourage investment in capital market, it is decided to withdraw enhance surcharge levied by the Finance No. 2 Act 2019. In simple words, the enhance surcharge on FPI goes, surcharge on domestic investors in equity goes. Pre-budget position is restored," Sitharaman said at a press conference here.

She said the global GDP was projected at 3.2 per cent and India is placed in a better position than many developed countries like the US and Germany.

The weak demand globally points to lowering of consumption.

Her comments came as Moody's Investors Service lowered India's GDP growth forecast for the calendar year 2019 to 6.2 per cent from its previous estimate of 6.8 per cent.

Sitharaman said that the government was committed to the reform agenda and has several steps for ease of doing business including of labour reforms. (ANI)

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