India, global investors need dialogue on tax issues: OECD

NEW DELHI: Indian government, industry and global investors should engage in a "constructive dialogue" to resolve taxation issues for facilitating greater flow of foreign investments into the country, OECD's global tax policy expert has said.

"India is by far one of the most important investment destinations for all of our companies... An open and constructive dialogue between the global investment community, Government and industry partners will be the only way forward in alleviating current tax challenges," said Will Morris, Chair of the BIAC Committee on Taxation and Fiscal Policy.

Business and Industry Advisory Committee (BIAC) is a wing of the Organisation for Economic Cooperation and Development, a grouping of developed and developing nations.

A visiting OECD delegation met senior officials from the government as well as the private sector to discuss ways to further improve India's tax climate for foreign investment, according to a press release here today. The visit of the OECD mission was hosted by US-India Business Council (USIBC).

"As a major global economic power, it is imperative to the global tax system that India's tax laws and administration are in harmony with international norms," Morris said.

The OECD delegation also met the International Monetary Fund officials here to discuss macroeconomic issues, as well as senior representatives of industry bodies Ficci and CII.