style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; text-align: justify; ">Prime Minister Dr. Manmohan Singh seems to have got down to business as Finance Minister on the second day of assuming the additional role.
Media reports suggested on Thursday that Dr. Singh was keen to clear up the confusion over controversial tax policies over the next two-three weeks in a bid to restore investor confidence and boost dollar inflows.
The Prime Minister plans to issue an "explanatory note" on portfolio investments, a PMO official was quoted as saying by media reports.
The proposals to crack down on tax evasion and allow the Government to make retroactive tax claims on overseas deals involving Indian assets have kept foreign investors at bay since the Union Budget was announced in mid-March.
On Wednesday, the Prime Minister told a gathering of economic advisers and top Finance Ministry officials that reviving investor sentiment was his top priority.
According to experts, GAAR provisions were vague, creating uncertainty at a time when India badly needs overseas capital flows to curtail a widening current account deficit.
Although erstwhile Finance Minister Pranab Mukherjee sought to pacify investors in May by deferring GAAR till 2013, the overall sentiment towards India has not changed much.
GAAR was aimed at curbing tax evasion by investors through Mauritius or other tax havens.
We need to address domestic problems quickly: PM to FinMin