Government must invite feedback before announcing new policies
- A more organised and transparent process would help prevent frequent flip-flops, which do nothing to change India’s reputation for policy uncertainty
On the evening of 28 June, the government said it had decided to defer the implementation of the 20% tax collected at source (TCS) on international payments made through credit cards under the liberalised remittance scheme (LRS). Card-issuing banks, which were to start collecting this tax from July 1, will now do so from October 1. The government also said the TCS would only apply to international credit card spending above ₹7 lakh in a year and not all spending, as originally planned.