Timely decisions

The Government’s big bang move to allow 100 per cent FDI in single-brand retail and construction development and up to 49 per cent in power exchange should be well received. The relaxed FDI norms could prove to be a game-changer and improve ease of doing business. Now, foreign single-brand players can set up shop in India without waiting for government approval. The move to allow overseas airlines to own 49 per cent in Air India subject to conditions is also welcome. All this coming ahead of the PM’s trip to Davos for the WEF should do wonders for the economy.

NJ Ravi Chander

Bengaluru

Flexibility will help

Though opening the doors for foreign airlines to invest up to 49 per cent in Air India may at appear to mock the ‘Make in India’ campaign, the Government has no other viable option to bail out the national carrier (’Air India doors open to foreign carriers’, January 11).With the Indian private carriers not offering any tangible proposals, no purpose would be served by pumping in taxpayers’ money to revive the fortunes of the sinking ship. However, foreign airlines may be wary of the rider that substantial management and control would remain with the Indian government. A flexible approach to foreign investors with expertise to have a say in the day-to-day operations may lead to a win-win situation for both.

V Subramanian

Chennai

A taxing tax

Taxing LTCG on equities would impact risk appetite and income-generating investments in the economy. Although the tax would reduce market speculation and increase dividend payouts by firms, it runs the risk of hampering overall capital market activity and thus the net realised tax revenues.

Capital gains are usually uncertain and also unreal on account of being sourced by inflation. The discounted future earnings of the enterprise form a part of the gains too. Moreover, potential taxpayers cannot offset cumulative market losses against stock-specific gains. Imposing the dual tax would therefore ignore investor interests and diminish the overall portfolio returns.

Girish Lalwani

Email

Spare a thought

This refers to ‘With an eye on elections, Govt may do more to deliver on populist promises’ (January 11). The schemes listed in the report are required to improve the daily life of the people; whether they are implemented with an eye on the ensuing elections or otherwise, the step is in the right direction. There are many more items requiring the Government's attention. It should appoint a panel of experts and political heavy-weights to study the standard of living of the entire population with a focus on cost of living and per capita income, availability of materials required for day-to-day life, and employment opportunities, and focus on what needs urgent action. Healthcare and facilities for senior citizens and the disabled are important.

TR Anandan

Coimbatore

Patriotism and the anthem

The Supreme Court’s latest ruling making it optional to play the national anthem in cinemas before every screening is welcome. Implicit in the ruling is an indication that no one can force patriotism down prople’s throats.

Singing or paying respect to the national anthem is only a small part of patriotism. At best it is a symbolic gesture of solidarity with a larger political entity formed on the basis of geography and on the strength of living together. No great purpose is served by playing the national anthem if it does not inspire us to work for the welfare of our fellow-countrymen.

It is ironic that those who humiliate dalits and persecute Muslims happen to be the ultimate votaries of the national anthem. It is also relevant to ask what the national anthem means to those living in destitution. The hyper-nationalist brigade must now step back from pouncing on people perceived to be unpatriotic or less patriotic. A compulsory display of patriotism is soulless and must not be insisted upon.

G David Milton

Maruthancode, Tamil Nadu

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