Three month delay on Hutch Essar tax issue

12 Mar 2008

According to numerous Indian news sources, Vodafone’s court challenge against the USD2 billion tax bill it has received for its acquisition of Hutchison Essar last year has been adjourned for three months. The court said it wanted to allow time for changes to tax laws to come into force. The changes were introduced in the last budget and are due to come into force in the next few months. ‘Vodafone continues to believe and has been advised that there is no tax payable on the transaction,’ the British mobile operator said in a statement. The Bombay court had been expected to hold a five-day hearing on the case starting on Tuesday.

India, Vodafone India