Tax terrorism eroded confidence of Indian businesses: Manmohan Singh

Former prime minister Manmohan Singh on 7 November cornered the Centre over its economic policies and asserted that the fear of tax terrorism has eroded the confidence of Indian businesses.

Critical of the Good and Services Tax, Dr. Singh said the tax reform broken the back of small businesses.

"The fear of tax terrorism has eroded the confidence of Indian business to invest. This twin (demonetisation and GST) blow is complete disaster for our economy, it has broken the back of our small businesses," Dr. Singh said.

Cornering the government over increase in imports from China, Dr. Singh said because of the weak economic policies of Prime Minister Narendra Modi and his government, New Delhi had to run for Chinese imports at the cost of Indian jobs.

"We had to run for Chinese imports at the cost of Indian jobs. In the first half of 2016-17, India's imports from China stood at Rs 1. 96 lakh crore. In 2017-18, it increased to Rs.2.41 lakh," he said.

"Unprecedented growth of imports by over Rs 45,000 crore, a 23 percent increase in a year, can be attributed largely to demonetisation, GST. When undertaking endeavour of one nation one tax, if the Prime Minister had taken inspiration from resolve of the great Sardar Patel, the outcome would've been different," he added.

-ANI