LONDON, July 10 (Reuters) - Britain's Vodafone saidon Thursday it intended to push ahead with internationalarbitration in its long-running Indian tax dispute, after theIndian government said it would set up a committee to reviewretrospective tax claims.
Vodafone and India have been locked in a $2.2 billion taxstandoff since the British company acquired Hutchison Whampoa's Indian mobile assets in 2007.
Vodafone thought it had finally secured victory in the casein 2012, when India's Supreme Court dismissed the tax demand.But the government responded by announcing retrospectivelegislation that would change the rules.
Indian Prime Minister Narendra Modi's new government onThursday unveiled its first budget and said it would reviewcertain claims.
"We note the Finance Minister's announcement that existingcases arising from the 2012 retrospective tax law should followthe lawful process in which they are currently beingadjudicated," the British firm said in response.
"Vodafone will therefore continue the process ofinternational arbitration initiated under the India-NetherlandsBilateral Investment Treaty." (Reporting by Kate Holton, Editing by Paul Sandle)