Letters

Letters to the editor dated October 1, 2020

| Updated on October 01, 2020 Published on October 01, 2020

Electronic gains

This refers to ‘Ready for e-invoicing?’ (October 1). Indeed e-invoicing will claim a big slice in the tax reform through GST by facilitating real-time tracking of invoices and could reduce tax frauds to a larger extent. E-invoices could be a reference both to the business and the government to calculate the GST to be paid and verify the same by the tax authorities.

There will be no slippage in calculating the value creation right from the supplier till to the ultimate buyer. Since it is a concrete evidence for the value of goods sent, there will be no need for assessment in the intermittent stages and harassment by official will be drastically reduced.

NR Nagarajan

Sivakasi

Constitutional spirit

This refers to ‘Travesty of justice, says Left’ (October 1). The criticism levelled in some quarters against the CBI Special Court acquitting all the accused in the Babri Masjid demolition case seems to be more emotional than rational. Even in terror attack cases, in the absence of clinching evidence, several accused have been discharged, receiving the benefit of doubt. In deciding a criminal case, any judge only goes by the available evidence and not by “constitutional spirit”.

V Jayaraman

Chennai

Crack the whip

The report on recent developments in LVB and Dhanlaxmi Bank overthrowing the statutory auditors besides RBI approved directors and CEO are shocking and a matter of concern (October 1). It is not a board room battle of a corporate, to be treated as an internal matter; these pertain to banks where depositors are involved. The problem has arisen due to existence of groups in these banks, each trying to have supremacy. The RBI should take control of both the banks and ensure that the interests of depositors are protected. The regulator may have to allow appointment of bank CEOs only after AGM approval in future. The RBI should also conduct an independent management audit of similar small banks to avoid recurrence of such events and explore consolidation of such weak banks.

M Raghuraman

Mumbai

Misplaced taxation

This refers ‘Cessed out’ (October 1). There needs to be greater concern on our unimaginative approach to taxation, per se. Revenue is augmented by economic growth and never by instigating price spirals through casual taxation. Petrol’s ex-refinery price is loaded 150 per cent at the pump, denying benefits to consumers. This then dims market sentiment that sustains inflation. This only reflects lax efforts on collating intelligent data for tax recovery, direct and indirect.

If the once mooted cash withdrawal tax was cavalier, imposing one cess after another was facile and a surcharge as blatant, which economists label the “worst tax”. When these levies continue endlessly it is a travesty of equitable taxing ethos. Fiscal indices being favourable, taxation ought to be designed to assist economic growth, not to breed misplaced taxation.

R Narayanan

Navi Mumbai

Selling spree

This refers to ‘Centre extends BPCL EoI deadline’ (October 1). The reported fact that the centre has further extended the deadline for the submission of Expression of Interest (EOI) for the privatisation of state-run oil refiner Bharat Petroleum from earlier September 30 to November 16) obviously raises several eyebrows. One just shudders to imagine the real reasons behind the government’s failure to ‘attract’ any ‘worthy’ buyers from the private sector, notwithstanding its keenness to sell 52.98 per cent stake therein to a strategic buyer.

Kumar Gupta

Panchkula, Haryana

A genuine gesture

The proposal of banking industry to the finance ministry to compensate the amount of interest waived on the loan amount during the moratorium period if at all materialised is a genuine one. If it is not done the threat by the bankers that they have to decrease the interest rate on their deposits to maintain the interest margin would harm the poor depositors especially the senior citizens.

TSN Rao

Bhimavaram, AP

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Published on October 01, 2020
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