The Hindu Business Line : Bring back LTCG?

Referring to the unprecedented fall in the stock market, the CPI (M) leader Mr Sitaram Yechury called for bringing back the long-term capital gains (LTCG) tax and for reviewing the double taxation avoidance agreement with Mauritius.

Finance Minister clarified that there is no plan for anything like that. This reflects their respective ideologies. The Finance Minister is concerned with the fall and is taking all efforts to arrest it. The chances are that the market may soon stabilise after some and there is no need for panic.

A. Jacob Sahayam Thiruvananthapuram

There is no basis for imagining a substantial increase in tax burden for FIIs. The flight of capital is due to misapprehension. Mostly, FIIs are watching the situation and some of them have accelerated their buying spree. Some of the FIIs have in their anxiety, declared themselves as traders. CPI (M) is of the opinion that the recent stock market melt down, bringing disaster to many homes, is linked with the CBDT circular which is officially stated to have been floated only to elicit public views.

Allaying the misapprehension about the severity of bullish trade in stock markets, the Finance Minister has stated that our economic fundamentals are very bright and tell us a growth story.

In the circumstances, the government stand that re-introduction of long term capital gains is not warranted is based on facts and not on fiction.

T. S. Sundareswaran, New Delhi

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