Union Finance Minister Calls for Strong Measures to Reverse the Ongoing Trend of Illicit Outflows from Developing Countries and Exploitation of their Natural Resources Through Abusive Transfer Pricing Schemes; Inaugurates two Day High Level International Seminar on “Adopting Tax System and International Tax Rules to the New Global Environment: a Shared Challenge for India and the Oecd”; India Oecd to Strengthen Ongoing Cooperation on Tax Related Issues Through three Year Partnership Programme

The Union Finance Minister, Shri Pranab Mukherjee calls for strong measures to reverse the ongoing trend of illicit outflows from developing countries and exploitation of their natural resources through abusive transfer pricing schemes. Shri Mukherjee said that this abusive behavior is robbing developing countries of their scarce resources, which is required for financing of developmental programmes. The Finance Minister said that a recent report of global financial integrity outlines the illicit outflows from developing countries. The Union Finance Minister Shri Pranab Mukherjee said that we need to take strong measures to reverse this trend. He said that India and Organisation for Economic Cooperation and Development(OECD) can partner in this process. Shri Mukherjee said that transfer pricing continues to be an important tax issue due to high increase in cross border trade taking place within multinational enterprises located in developed, developing and undeveloped countries. He said that these challenges of new global environment will have to be addressed through bilateral and multi-lateral cooperation. Shri Mukherjee said that the emphasis of cooperation has to be on professional and skill up-gradation both in tax administration and in industry. He said that both India and OECD have been taking several steps to improve professional standard and competencies in these areas.

EGOM to meet next week to decide on diesel, LPG, kerosene

Finance Minister Pranab Mukherjee today said the Empowered Group of Ministers headed by him would decide on the price hike of diesel, LPG and kerosene when it meets next week.“A decision will be taken on raising prices of these items when the EGOM meets next week,” Mr. Mukherjee told reporters here after meeting Congress MLAs elected in the West Bengal Assembly elections.

Growth could be 8 per cent during FY 12: FM

Finance Minister Pranab Mukherjee on Thursday projected India's economic growth at 8 per cent for the current fiscal, lower than the budgetary estimate of 9 per cent, due to measures taken to rein in high inflation."If oil prices continue to rise, it would be difficult to achieve higher GDP. GDP may come down to 8 per cent from (the projected) 9 per cent," Mukherjee told reporters on the sidelines of ADB annual meeting in Hanoi.The government's (India) primary concern now is to manage inflation while sustaining high growth rate.Hardening of global commodity prices, particularly oil prices has accelerated inflation, he said adding "our projection is 7.5-8 per cent inflation during the year".

Finance Ministry Initiates Public Debate on Negative list for Taxation of Services

Ministry of Finance has initiated a public debate on the issue of a negative list for taxation of services as announced by the Finance Minister, Shri Pranab Mukherjee in his Budget 2011. The text of the speech is as below:

Row won't affect drafting of Lokpal Bill: Govt

Government has said controversies involving some civil society members of the joint comm for drafting the Lokpal Bill would not affect its working and will work with the members to prepare a "strong and sound" anti-corruption legislation. 

After a meeting of Congress' Core Group headed by Sonia Gandhi with Prime Minister Manmohan Singh by her side in New Delhi on Friday, Finance Minister Pranab Mukherjee said controversies "won't affect" the working of Lokpal Bill drafting panel.

No authentic figures' on black money deposits: Fin Min

As the tussle seeking disclosure of names of people who have stashed black money abroad continues in Supreme Court, the Finance Ministry says it has "no authentic figures" about the quantum of money deposited in Swiss banks. 

The Ministry also said that certain "references" have been received on the black money issue but declined to make the information public since it will "impede the process of investigation" as the case is being heard in the apex court.