NEW DELHI, Nov 9 � Finance Minister Arun Jaitley today promised a reasonable and rational tax policy, which will not be �ultra-aggressive� with tax payers, to make India a hub of low-cost manufacturing.
He also said the government will amend the tough land acquisition law even if the opposition does not support, as it looks to restore confidence in the economy.
At the same time, the Minister expressed hope that the Insurance Bill, seeking to raise the foreign direct investment cap in the sector to 49 per cent from the existing 26 per cent, will be passed in the upcoming winter session of Parliament.
Stating that the Indian economy is facing challenges, he said: �So, a reasonable and rational tax policy (is needed). It can�t be ultra aggressive with the tax payers.�
Noting that India is not a high tax country, Jaitley said the Tax Department at present is following the principle that those who have to pay tax must pay and those who don�t have to pay should not be harassed for non-payment.