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Vodafone and India have been locked in a $2.2
billion tax standoff since the British company acquired
Hutchison Whampoa's Indian mobile assets in 2007.
Vodafone thought it had finally secured victory in the case in
2012, when India's Supreme Court dismissed the tax demand. But
the government responded by announcing retrospective legislation
that would change the rules.
Indian Prime Minister Narendra Modi's new government on Thursday
unveiled its first budget and said it would review certain
claims.
"We note the Finance Minister’s announcement that existing cases
arising from the 2012 retrospective tax law should follow the
lawful process in which they are currently being adjudicated,"
the British firm said in response.
"Vodafone will therefore continue the process of international
arbitration initiated under the India-Netherlands Bilateral
Investment Treaty."
(Reporting by Kate Holton, Editing by Paul Sandle)
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