India Finds New Ways to Tax Foreign Investors
It’s easier to go after Vodafone than lower fuel subsidies
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Sigve Brekke says he’s had just about enough of India’s government. Brekke is managing director of Uninor, the Indian cellular operator controlled by Norwegian carrier Telenor. He’s concerned about being socked with a large bill when the government reissues mobile licenses that were canceled in February by the Supreme Court after a bidding scandal that cost some $31 billion.
While officials say they just want a fair price for the licenses, Brekke sees the government trying to stem the state’s red ink by wringing cash out of foreign carriers. “We won’t be able to pick up this check,” says Brekke. If the government doesn’t back down, he adds, “Telenor will be forced to leave.”