NEW DELHI: A month after increasing taxation for Foreign Portfolio Investors (FPIs), the Central government on Monday assured to soon initiate discussions with representatives of overseas investors, amid continuing foreign fund outflow from the markets.
“I am quite open to hear them out, what they (FPIs) have to say,” Union Finance Minister Nirmala Sitharaman told reporters, adding that Economic Affairs secretary Atanu Chakraborty would hold discussions with representatives of FPIs soon.
“So, he (Chakraborty) will also directly talk with FPI representatives. The secretary will be holding a consultation with them. Walk up to them, talk to them and make us understand… what they have to say,” Sitharaman said.
In the Union Budget 2019-20, the government decided to increase surcharge from 15 per cent to 25 per cent on taxable income between Rs 2 crore and Rs 5 crore, and from 15 per cent to 37 per cent for income above Rs 5 crore. It would also be applicable for FPIs operating as trusts or as association of persons. Consequently, FPIs pulled out Rs 2,881.10 crore from debt and equity segments on August 1 and 2. In July, they had withdrawn a net amount of Rs 2,985.88 crore.
To address concerns of the industry, the Finance Minister on Monday met heads of public sector banks as well as private lenders including HDFC, ICICI, Axis, Kotak Mahindra and Citi banks.
As part of a series of meetings Sitharaman will hold with various stakeholders in the economy, she will meet representatives of MSMEs and Union Minister for Road Transport and Highways Nitin Gadkari on Tuesday; automobile and auto component manufactures on Wednesday; with industries on Thursday; markets (stakeholders) on Friday, and on Sunday, a meeting is scheduled with home buyers and real estate participants.