Ramana Gove

It is well said that there is nothing moral or immoral about taxation ! But the rationale in collection and utilisation do matter much ! With 70 paise of every rupee spent by the government coming from taxes, there is nothing wrong in levying taxes if one wants development.In fact, a day should come when we volunteer to pay tax and demand the amenities in turn ! I have been in full agreement with the writer’s opinion on the corporate tax relief. As I have been repeatedly mentioning in my comments and write ups,the step had a whipsawed effect ie.,on one hand the investment scenario did not improve and on the other, there is a huge erosion in the revenue for the government.The reason is that our present economic crisis is mainly because of lack of appetite for consumption but not that of investments.An investor invests in a venture, if there is demand.So, greater effort must be aimed at improving the appetite for demand which needs measures to boost the money in the hands of masses, if need be by infusing cash directly into their hands.Unless and until this is taken care of either by reducing the fuel bill or by controlling cost of living or by various other methods to increase savings or by incentivising spending, the chances for revival appear bleak in the near future.The policy measures of easing liquidity such as rate cuts, credit guarantees etc. act as only cosmetic measures and look theoretical rather than practical.