New direct taxes code?

This refers to 'Bring Direct Taxes Code: Chidambaram asks Centre' (March 29). It was interesting to observe former Finance Minister P Chidambaram asking the incumbent Finance Minister Nirmala Sitharaman to bring a new draft of the Direct Taxes Code to Parliament by getting rid of the outdated provisions in the Code drafted by the UPA.

He added that the world is going through a churning and it requires sound tax policies, sound financial management and sound economic management. May be that he has some genuine concern on this count.

However, his arguments about the 'faceless' Income Tax assessment terming it as a 'regressive provision' may not find many buyers. Does it really matter who the assessing officer is, where he is and whether he has all the past records, if an 'assessee' gets proper treatment under such a regime?

SK Gupta

New Delhi

Right to strike

It is highly unfortunate to see people criticising the strike instead of supporting it. The government’s current policies are hitting the common man. Fuel prices are revised upwards on a daily basis. The latest bad news is that prices of medicines are going to be raised by more than 10 per cent. Workers’ rights are being slowly eroded and we cannot accept all this without a murmur of protest.

Some hardship may result because of the strike. But it has become imperative to take a stand against the government’s policies. Otherwise it is going to be difficult to survive. The benefits of employment like PF and Leave are also in danger as contractual labour is not provided with these benefits. Isn’t that enough reason for the working class to strike?

Anthony Henriques

Mumbai

Central banks’ dilemma

This refers to “Central banks have to do a tight rope walk” (March 29). Rise in Inflation is quite rapid in US and Europe when compared to India which had called for a swift action on the part of central banks of these countries. US Fed increasing the policy rate with few more in the offing is proof of that. As far as India is concerned the CPI rate was ruling under the 4-6 per cent band in 2021 except for minor fluctuations.

Hence the RBI’s accommodative stance was understandable. Now given the changing economic dynamics at the global level in terms of supply side constraints, high energy and food prices, rising inflation etc., central banks world over have started tightening their monetary policies.

Though the threat posed by the pandemic have considerably receded, the ongoing Russia-Ukraine war is posing a huge challenge with skyrocketing energy prices. With India importing 85 per cent of its oil needs and with retail oil prices increasing almost on a daily basis, which is impacting domestic inflation, it is time for RBI to revise its reference rate upwards and change the policy stance as ‘neutral’.

Srinivasan Velamur

Chennai

PMGKY, only safety net

This refers to the Editorial "Grain of truth" (March 29). The extension of the PMGKY by another six months is a much needed succour for a pandemic ravaged nation. As advocated by the Editorial it cannot be used as a tool for winning elections.

Besides fiscal pressure on procurement, cost of warehousing, soil exhaustion, and water depletion are the major agricultural problems.

Nevertheless India's breaching of the WTO mandated subsidy level of 10 per cent of the value of production is also a major concern on stocking grains. Hence the free ration ought to be only for contingencies and must not become a permanent feature.

NR Nagarajan

Sivakasi

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