The tax vision

Taxation has helped rulers serve society since time immemorial. The Indian direct tax system is based on the vision of creating an enabling policy environment and augmenting the revenue mobilisation apparatus for optimum revenue collection under the law, while maintaining taxpayer confidence in the system. It is intended to provide an efficient and transparent mechanism for collection of indirect taxes and enforcement of cross border controls with a view to encouraging voluntary compliance.

But, falling actual receipts, narrow tax base, growing legal tangles and corrupt practices, lack of adherence of international standards and green accounting norms, new changes in the system etc, clearly shows the system is incapable of realising its vision most of the time.

Therefore, mobilising the people’s confidence in age-old canons of taxation seems more vital than mobilising financial resources. The system needs to be more vibrant.

B Srinivasa Rao

Kakinada, Andhra Pradesh

Regressive provision

There is a provision for confessional tax treatment on the purchase of a second house. This provision is blatantly regressive because it incentivises the purchase of property by high income people and negates the same for low income people.

Housing stock is limited because it has to depend on land which is always scarce. To expect people with lower means to compete with those in higher means for the same stock of housing is a mockery of the socialist intentions of our government.

Interest subvention of up to 2 per cemt on loans up to ₹10 lakh must be provided to buyers of residential homes and all other concessions should be withdrawn.

Krishna Khandelwal

Ahmedabad

Shocking funds share

The news that the share of funds political parties got through ‘unknown sources” constitutes about 69 per cent is shocking. The Government’s opposition to bringing political parties under the ambit of the RTI Act needs to be read in this context.

The Government launched the demonetisation exercise with much fanfare to eliminate corruption and black-marketing. What purpose is it going to serve when the limit for accepting political donations still remains at ₹20,000? No political party is ready to support legislation to bring them under RTI.

Srinivasan Velamur

Chennai

Blame game

With reference to the editorial ‘Elections and governance’ (January 25), the decision of the EC and the Supreme Court rejecting the demand for deferment of the Budget is healthy. But the EC also dealt a blow by restricting the announcement of populist schemes that may influence voters..

The decision is an eye-opener. The Government may announce an increase in annual allocations in respect of MGNREGS rural jobs in the budget; the announcement has nothing to do with the elections. It will be more beneficial if the Government and its ministers concentrate on the developmental plans and fulfilling its campaign promises.

Jayant Muherjee

Kolkata

Exam blues

This is with reference to ‘Our disastrous exams system’ by Jinoy Jose P (January 25). We are unable to read the minds of the students. One of the main reasons for the deterioration of the education system in India is the deteriorating quality of teachers. Our education system focuses on memorisation and allows no scope for innovation.

We should develop an education system that encourages leadership qualities, entrepreneurship and rational thinkingat the school level. Well-trained teachers of high integrity and commitment should be appointed on the basis of merit. In their formative children should be encouraged to be innovative instead of making them do exams. A more meaningful and practical exam system should be drawn up and implemented. The Government should discourage politicians from running educational institutions.

Veena Shenoy

Thane, Maharashtra

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