No reform of income-tax law can be complete, unless it has a reasonable and rational personal inco-me tax rate structure. The next threshold for the initial rate of income tax of 10% should be increased to at least Rs 4,00,000. This will serve as a real incentive for tax honesty and voluntary tax compliance.
Likewise, the rate of tax on income between Rs 5 and Rs 10 lakh should be only 15%. The threshold for the maximum rate of personal income-tax of 20% should also be raised to Rs 10,00,000.
This tax reform is essential for checking tax evasion and for putting a premium on tax honesty. The rate of income-tax on firms should also be brought down to 25%, with a lower rate of 10% to 15% only on total income up to Rs 5 lakh.
- RN Lakhotia
Every sovereign country has the right to sell its goods at any price, collect sales tax and custom duties. Iraq had the right to sell its oil during the hard times it was facing at any price. Yet, the US-dominated UN fixed the sale price of oil at $21.20 per barrel, which was a dollar or two below the market price. So, if Iraq asked buyers to pay just a little more than the unjustly dictated UN price, what was wrong
If those who sold Iraqi oil on humanitarian goods are punished, as is being demanded by many quarters now, the Indian government will become a party to the rape and persecution of Iraq by the US. Hence, the question of punishing those named in the Volcker report should not arise.
- PK Nigam
Women & polls
This refers to your editorials Unfair deal(Nov 10) and Double standards (Nov 11), pointing out the low number of women fielded by political parties in the Bihar polls. The same situation will continue because political parties are only concerned with the ability of candidates to win an election. But if reservations of seats for women is made compulsory by law, political parties will be compelled to field women candidates.
- A Jacob Sahayam