Chidambaram helping MNCs, says CPI-M

New Delhi, Aug 7 (IANS) The CPI-M Tuesday accused Finance Minister P. Chidambaram of helping multinationals to escape tax on assets acquired in India and also foreign and Indian companies to avoid tax.

Commenting on the minister's intention to reverse the retrospective effect in tax law, it said this would help Vodafone to avoid paying a tax claim of Rs.12,000 crore on acquisitions in India.

"The other step announced is to review the General Anti Avoidance Rules (GAAR) which was meant to plug the loopholes which enable tax avoidance by companies using the Mauritius route," a CPI-M statement said.

The Communist Party of India-Marxist said "the retrospective provision was in the Finance Bill which was adopted by parliament. No change can now be made without the parliament's approval."

"The minister has set out a neo-liberal package of measures which seeks to reverse the decisions taken by parliament and his own government.

"It is obnoxious to argue that in order to regain 'investor confidence', tax laws should be so amended as to violate principles of national justice in order to provide avenues for profit maximization at the expense of public revenue," it said.