The Hindu Business Line : BUDGET WISHLIST

The aviation sector, reeling under huge losses, must be hoping for some positive policy initiatives in Budget 2008-09. The demand for rationalisation of taxes on aviation turbine fuel (ATF) has not been met. Sales tax on the fuel must be slashed to a uniform rate of 4 per cent across the country and ATF classified as “declared goods”. ATF prices are 60-70 per cent higher than the international benchmarks.

The other key issue is the new norms for airlines to fly abroad. Domestic players such as Kingfisher and SpiceJet have been seeking relaxation of the norms, under which only Indian and Jet Airways are defined as ‘designated carriers’ to operate overseas.

Prashanth Tapse Mumbai

Tax exemptions

The Rs 1 lakh tax exemption should be exclusively for investments in unit-linked insurance plans.

When the stock market goes down insurance companies are asked to support the market. If the Government allows exclusive tax exemption, the it will help such companies invest in the market to boost investor confidence which, in turn, helps the market grow, the investor get more savings, more returns and tax benefit.

To develop infrastructure, the Finance Minister can think of giving tax exemption for investments in infrastructure funds that are three-year, close-ended in nature, with the added limitation of no exit option till lock-in period is over. Thus, there will be no redemption pressure on the fund manager.

There is a need to tax agricultural Income, but for big farmers, so that the small farmers can get the benefit of farm subsidies. The tax revenues can be used to fund the subsidy bill.

Nilendu Mukherjee Kolkata