The Hindu Business Line : NRE deposits: Tytler hints at removal of tax proposal

THE Minister of State (Independent Charge) of the Ministry of Overseas Indian Affairs, Mr Jagdish Tytler, has hinted at a complete withdrawal of the controversial tax proposal on NRE deposits, but ruled out the likelihood of NRIs being granted voting rights in the near future.

Mr Tytler told Business Line following a meeting with prominent members of the Indian community in Abu Dhabi on Monday that the tax withdrawal on NRE deposits was one of the topics on the 23-point agenda for overseas Indians that was slated to be presented at the upcoming Pravasi Bharatiya meet in Mumbai in January.

"The agenda has been approved. I am confident that the NRE tax proposal, which has been postponed till the next Budget may be withdrawn completely,'' he said.

The NRI agenda covers a number of issues including special courts for NRIs, measures to ensure greater vigilance of the activities of recruiting agents and protect the interests of Indian workers overseas.

Mr Tytler, however, completely ruled out the possibility of NRIs being granted voting rights. He said that the Indian constitution stipulates that permanent residency is required for any Indian to qualify as a voter.

Earlier, at the meeting, the Minister assured NRIs that the Government is initiating pro-active measures from early next year that will address issues concerning them and encourage NRI investments in various sectors. A major step in this direction is that State Governments have been urged to set up new NRI Ministries or bring NRI affairs directly under the purview of Chief Ministers in a bid to offer a single window agency to deal with NRI affairs, Mr Tytler said.

He stressed that the establishment of a special Ministry at the Centre exclusively to cater to NRI affairs would mean that overseas Indians would now have a focal point of contact.

Kerala and a few other States had already taken the lead in this connection, he said.

A proposal has also been made to appoint representatives from among NRIs in different countries who would co-ordinate with the NRI Ministry and also act under the aegis of the local Indian embassies or consulates, he said.

"The Pravasi meet will be a business like affair and we hope to take several firm decisions regarding issues raised by NRIs during my visits to make the Pravasi meeting a once in two years affair rather than annually as at present,'' the Minister said.

"The idea is to use the year in-between to hold Pravasi meetings overseas in areas where there is a large congregation of NRIs. A meeting in the Gulf covering the Gulf and Africa region is definitely in the offing,'' he said.

He also assured that efforts were on to launch Air India's budget airline as early as possible. Lowering of fares on the Indo-Gulf sector is one of the priority issues that his Ministry was addressing in view of the large number of low-income expatriates travelling to this region.