Opinion - Letters to the Editor

Savings hit

Sir, — The Finance Minister has curtailed certain benefits which helped the small and the middle-income group save for the future. As far as the upper class is concerned, the budget has induced them to go in for long-term investments. The interest reduction is not conducive to the growth of savings of the people.

The extension of service tax to life insurance is wholly unjustified. LIC invests its money as per the Government directives. It also pays to the Central Government five per cent of its surplus every year. Therefore, the move to penalise people with service tax on life insurance must be dropped.

The mutual fund industry is beginning to show results after hard trials. The proposal to tax the dividends and the yield will again keep the people away.

L. Samraj,
Chennai

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