I was kind of disturbed to read the news “DTC Bill likely in winter session: FM” (FE, October 30). The finance minister has been trying to bring in a new law called the Direct Taxes Code (DTC) to replace the present Income Tax Act. The question is what useful purpose will the DTC serve if it is introduced in the winter session or later on? The main aim of the DTC Bill is to rationalise the tax rates. The question is: Is it necessary to bring a DTC Bill in order to achieve this outcome? Can’t it be done through the Finance Bill 2014? Another aim of the DTC Bill is to bring more people and companies under the tax net. But the question is: Can't the same be done under the present Income Tax Act?
Apropos of “Inflation warrior Rajan raises repo by 25 bps, eases rupee defence” (FE, October 30), raising the repo rate to 7.75%, RBI has brought down MSF to 8.85% restoring of 100 bps between LAF repo rate and MSF rate. And banks get R20,000 crore additional fund boost. There may not be any hike in lending rate immediately. However, your editorial “Costly mistake” (FE, October 30) has drawn attention to the future. Food inflation, despite a good monsoon, has not come down. The government has to act fast to bring it down.