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There should be no flat rate service tax. It should be progressive according to the usage. So the flat telephone service tax may be reduced to minimum 2 per cent for those who use up to Rs 500 and progressively enhanced to 5-10 per cent. Exemption limit for income-tax for employees should be Rs 2.5 lakh, as the present slab covers almost all the employees even in Grade D. So there should be progressive tax system starting with 5 per cent with a ceiling of 30 per cent instead of the present system. Regarding gratuity, employees are expecting relaxation of ceiling. The gratuity Act should be modified. At least 20 days per month served should be taken into account instead of the present 15 days for reckoning gratuity. Central Government employees expect interim relief from the Government, which should be announced in the Budget itself.

R. Pattabiraman, Tiruvarur, TN

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