The Hindu Business Line : Kelkar's prescription

This is with reference to the editorial "A taxing prescription" (Business Line, July 27). It would be difficult for a coalition of disparate parties to simplify the nation's tax law structure. It would be quite difficult for the Finance Minister to shed the idea of concessions and incentives. The Minister is not privileged to the kind of freedom the committees enjoy.

The recommendations of the task force on tax reforms in tune with global norms could not be fully implemented by the previous government. Now, another task force, has recommended strict discipline on fiscal and revenue deficit targets.

It is not that sure whether the States may bite the bait of getting the right to levy on services in the place of submission to the standard rates of tax fixed by the Centre and follow procedures of tax administration set by the latter. This may be tantamount to encroachment on the limited autonomy of the States.

C. P. Velayudhan Nair

Kochi

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