The Hindu : Unravelling budget

Online edition of India's National Newspaper
Monday, Apr 01, 2002

Opinion

Opinion - Letters to the Editor

Unravelling budget

Sir, — Refer your Editorial ``Unravelling of the budget'' (March 25). Though the Finance Minister, Yashwant Sinha, is persistent in arguing that the decision to gradually phase out the subsidy on kerosene was taken by the United Front Government in 1997, the ground reality of low standard of living and declining per capita income cannot be overlooked.

The least the Government can do is to defer the move to withdraw the subsidy on kerosene in the larger interest of the people below poverty line.

P. K. Varadarajan,
Chennai

* * *

Sir, — The Finance Minister has proved that besides being ``surcharge Sinha'' and ``rollback Sinha,'' he is also ``regressive Sinha.'' Any progressive Finance Minister would provide incentives for savings and long-term planning. Instead, Mr. Sinha has dealt a harsh blow to the middle and salaried class by creating conditions against savings.

The reduction in the rate of interest on small savings, taxation of perks, the reduction of rebate for savings under Section 88, the taxation on dividends, the increase in the costs of LPG and kerosene, imposition of service tax on several new services including life policies, large-scale enhancements in excise duties and heavy exemptions on customs duties, raising the surcharge from 2 per cent to 5 per cent are all steps to squeeze the sincere tax-payer who has no escape.

J. Raghu Nath,
Kasibugga, A.P.

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