TWO leading global business associations have jointly urged Indian Government to enter into a dialogue with them to resolve the problems caused by retrospective amendment of taxation laws proposed in the Indian Budget 2012-13.

The entities are Paris-based International Chamber of Commerce (ICC) and Business and Industry Advisory Committee (BIAC) to the Organisation for Economic Co-operation and Development (OECD). The latter is an officially recognised representative of the OECD business community.

In a joint letter to Finance Minister Pranab Mukherjee made public yesterday by ICC, these two business organization state: “Dialogue is the best forum to solve differences of view. Let us work together to find a solution which raises necessary revenues while maintaining India's good climate for investments. Consequently we can all benefit: the global business community and the people in your beautiful country India.”

The duo says it is ready to discuss with Mr. Mukherjee and his ministerial staff how best to approach the balance between India's financial needs, as exemplified by the unexpected retroactivity of tax rules, and the optimal position of the country in attracting new investments not only by foreign investors (FDI) but also by resident Indians.