Current Issue
Organiser Home
The Moving Finger Writes
Media Watch
Thinking Aloud
Kids Org.
News Round-up
Readers’ Forum:
Kerala Newsletter

Previous Issues
September 04, 2011

August 28, 2011
August 21, 2011
August 14, 2011
August 07, 2011

July 31, 2011
July 24, 2011
July 17, 2011
July 10, 2011
July 03, 2011

June 26, 2011
June 19, 2011
June 12, 2011
June 05, 2011

May 29, 2011
May 22, 2011
May 15, 2011
May 08, 2011
May 01, 2011

April 24, 2011
April 17, 2011
April 10, 2011
April 03, 2011

March 27, 2011
March 20, 2011
March 13, 2011
March 06, 2011

February 27, 2011
February 20, 2011
February 13, 2011
February 06, 2011

January 30, 2011
January 23, 2011
January 16, 2011
January 09, 2011
January 02, 2011

December 26, 2010
December 19, 2010
December 12, 2010
December 05, 2010
November 28, 2010
November 21, 2010
November 14, 2010
November 7, 2010

October 31, 2010
October 24, 2010
October 17, 2010
October 10, 2010
October 03, 2010

2010 Issues
2009 Issues
2008 Issues
2007 Issues
2006 Issues

About us
Contact us


April 23, 2006
Organiser Home
Readers´ Forum
Money Matters
National Round-up
Kerala poll scene
The Moving Finger Writes
London Post
Kid´s Org
Media Watch
Think it over
Open Forum
India That is Bharat
Sangh Samachar
Interview of the week

April 23, 2006

Page: 9/34

Home > 2006 Issues > April 23, 2006

Money Matters

Mid-term budget burden on common man

By Geeta

To understand the NCAER point of view you need to have an FM who has foresight and is willing to listen to some expert advice. But Shri Chidambaram thinks he is the last word on the economy! Actually, Shri Chidambaram is the last word because he is the Finance Minister!

The Finance Bill for 2006 has already been passed within the first phase of the Budget Session of Parliament. Finance Minister P Chidambaram tried to corner all the credit for the eight per cent GDP growth for the year 2005-06 and the fact that his Budget did not impose much tax burden on the the much-touted common-man. But in his Budget speech, the Finance Minister had talked about the ill-effects of a plethora of excise and customs excise exemptions which , according to him, had outlived their utility.

With the Budget having been passed and the attention diverted to many other mundane issues, the Finance Ministry put out on its web-site a rather innocuous announcement. The government wanted a public reaction to its proposals to do away with scores of excise and customs exemptions. The public notice is drafted in such a way that you cannot make out anything on its main page until you reach a heading which says ??List of exemptions proposed to be withdrawn??.

One look at this list and you think ??My God it reads like a full-fledged Union Budget??. The implications would obviously be on the lines of a Budget. If the government had its way and the proposal to withdraw excise and customs on a large number of goods is put into effect, items of daily use including tooth powder, pencils and parts of pens, sports goods, bicycles, kerosene pressure lantern, wheeled toys, dolls will cost sizeably more.

Even the airfare by airlines may have to be revised, as the government plans to withdraw the excise exemption to the aviation turbine fuel. The aircraft fuel used by the domestic airlines is, in any case, subjected to a heavy burden of State taxes.

Accredited journalists who had plans to bring in personal computers from their next foreign visits will have to pay because the the lap tops upto Rs one lakh without any customs will have to pay duty on their imports. Till now, the journos had enjoyed this privilege, which this government does not like them to have any more. Excise duty exemptions enjoyed so far by fuel, surgical rubber gloves or medical examination rubber gloves, tyres, flaps and tubes used in the manufacture of power tillers, mosquito nets impregnated with insecticide, stoneware, which are only salt glazed and rough opthalmic blanks, for manufacture of optical lenses will also be withdrawn.

With the proposal to roll back the tax exemptions on things like mathematical boxes including geometry boxes and colour boxes, parents will have to shell out more for the kids? stationery.

?Government has identified a number of exemption notifications which can be removed,?? an official statement said. Finance Minister P. Chidambaram had made his intentions known in his Budget speech, the statement added. Exemptions, according to the FM are bad for the economy and he does not like them. Let?s hear out some-one else, who mind you is neither the interested party enjoying these exemptions, nor the Opposition NDA parties.

?The first question is if there is any country at all in the world that does not provide tax incentives via exemptions; second question is how to put a value on the economic benefits that flow from such exemptions; and the third is whether India overdoes the inventives. It cannot be the case that governments all over the world are foolish??, said the prestigious think tank National Council of Applied Economic Research (NCAER).

Both experience and professional literature, the NCAER argues, are suggestive of the fact that tax incentives have an important role to play. ??That they result in revenue losses is obvious. The real question is what does the economy gain.Some of the tax exemptions may have led to more output and hence more tax revenue??.

Well, to understand the NCAER point of view you need to have an FM who has foresight and is willing to listen to some expert advice. But Shri Chidambaram thinks he is the last word on the economy!. Actually, Shri Chidambaram is the last word because he is the Finance Minister !

Previous Page Previous Page (8/34) - Next Page (10/34) Next Page

copyright© 2004 Bharat Prakashan(Delhi) Ltd. All Rights Reserved
Designed and Hosted by KSHEERAJA Web Solutions Pvt Ltd