Prime Minister rules out imposition of Tobin tax on capital inflows in the country

Prime Minister Manmohan Singh today ruled out imposition of Tobin tax on capital inflows in the country, saying the situation in India has not not reached a problem stage.

“Well the Tobin tax has merit in particular situations but as far as India is concerned we have not reached a stage where capital flows have become a problem.

“I think if capital inflows into our country both by way of direct investment and by way of portfolio investment have been at reasonable levels, we don’t face situations of the kind which would require an imposition of Tobin tax,” he said in reply to a question on his views on the tax.

Source:PTI