Date:19/01/2006 URL: http://www.thehindubusinessline.com/2006/01/19/stories/2006011901041001.htm

Back Retaining FBT

This refers to the report, "Economists for retaining FBT, phasing out tax sops for software," (Business Line, January 14).

The suggestion to do away with the tax exemptions under the indirect tax regime, phasing out of tax incentives for exports and introducing inheritance tax with a view to help growth of education fall in line with some of the suggestions of the Left. The aim should be simplification of tax laws.

It could make administration easy, reduce cost, corruption, and litigation and bring funds without additional burden for the benefit of all. Value added tax should be fully utilised and central sales tax withdrawn.

The Finance Minister should not also hesitate to withdraw the controversial FBT and cash withdrawal tax if simplification is to be achieved.

A. Jacob Sahayam

Thiruvananthapuram

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