Russian oil firm Rosneft, the biggest foreign investor in India’s energy sector, Friday criticised taxation policy in the country saying it was a major hurdle in its expansion plans.
Rosneft and its partners had in August last year completed a USD 12.9-billion acquisition of Essar Oil to enter the world’s fastest-growing energy market, but have to pay a 20 per cent withholding tax even after paying corporate tax and dividend, the Russian firm’s First Vice President for Economics and Finance, Pavel Fedorov said. The Indian market’s potential is unparalleled and “that’s why we love to invest in India,” he said at a business event here.
However, India needs to streamline its taxation system with international regime and not double tax foreign investors, he said. “If an Indian company invests in Russia, yes it has to give tax and dividends, but on the other side, when we invest in India, we have to give all of this, but on top of it, we are being charged a withholding tax of 20 per cent. Read More