For the second consecutive year, Union Finance Minister Arun Jaitley’s tax proposals can be said to be visibly regressive. While these would result in loss of income/corporate tax to the extent of over a few thousand crores of rupees, his proposal to mobilise additional revenue, of a staggering Rs.20,000 crore, by enhancing taxes on goods and services, is bound to be inflationary.
One expected Mr. Jaitley to submit an interim report card on the steps to bringing back tainted money stashed abroad, which was one of the major thrusts of Prime Minister Narendra Modi’s high-pitched 2014 election campaign.
The Finance Minister has again come out with the familiar scheme of voluntary disclosures of concealed income, which is unlikely to work. It is also a tacit admission of the tax administration’s abject failure in devising an effective mechanism to enforce tax compliance. Why is there a scheme that places a premium on the dishonest? The mechanisms proposed for reducing tax-related litigation seem too cosmetic to reduce disputes.
S.K. Choudhury,Bengaluru
The Union Budget shows that the BJP-led NDA government is at last taking some measures to address rural distress and shed its tag of being a pro-corporate government. The increased allocation for MGNREGA reaffirms the fact that it is still the way to ensure the uplift of the rural poor. The tax breaks for start-ups are a welcome move.
Kiran Jose,Pala, Kerala
