As direct tax collections rise smartly, Central and state governments have the chance to cut indirect tax rates. Though, by definition, the burden of indirect taxes is not felt by the people as they are included in the prices of commodities, this is not fully true. Salaried and retired people, in particular, after paying sizeable amounts as income tax, are left with less disposable income, which in turn, forces them to curtail their expenditure. If the government enhances the indirect taxes on commodities, it will result in cost-push inflation, which affects the poor and salaried. This is tantamount to confiscation without compensation.
?Hansraj Bhat Mumbai
In shambles
Foreign investors, along with domestic conglomerates, are busy investing in car projects and mobile telephony, the two sectors functioning at an optimum level (?Battlefield India?, Dec 13). How strange, given that our physical infrastructure is in such shambles. Instead, they should be persuaded to pour their money into building roads and ports. These are sectors that badly need investment for a fairly long period.
?Naval Langa Ahmedabad
Moral of the story
Moral of the story: we can?t catch up with others if we are left at a pathetic No 128 in the HDI (?The race is…?, Dec 13).
?Jacob Sahayam Thiruvananthapuram