L E T T E R S    T O    T H E    E D I T O R

Tax net on SEZs damaging India

A recent report by Public Accounts Committee (PAC) presented in Parliament recommended setting up an effective and reliable oversight mechanism for monitoring actual net foreign exchange in Special Economic Zones (SEZs). It says that this mechanism is required for prompt recovery of duty forgone or evaded and also to provide a deterrent penal provision for willful default.

There is no denying the fact that it is very important to monitor the working of SEZ units and check them for duty evasion or misuse of SEZ policy. But at the same time what is also important is that SEZs will not be harmed or disabled in any way but it will dampen the scope of foreign investments in India.

The Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) introduced in the 2011 Union Budget did just that. Placing SEZs under the purview of MAT effectively takes away all tax concessions and benefits promised to investors for investing in SEZs.  This not only imperils their existing projects that were established on the basis of earlier promised tax benefits and concessions but potentially throws cold water on any plans of future investments in India.

SUSHANT SHARMA, Gurgaon

SIDDHANTH SINGH, Noida

Burden on middle class

Fresh taxes introduced by the Punjab Government will increase the burden on the salaried class (News report “Fresh Taxes must for growth: CM”, September 4). Rich people can buy houses, cars, clothes, accessories and petrol by shelling out few extra bucks, but what about the middle class which dominates the Punjab population. They cannot envisage buying a new house, jewellery, cars as it has become thornier for them to meet both ends meet.

It is high time that the youth and the educated middle class of Punjab rise to the occasion. They should make the government realise that people are still aware of their rights and can take away the power to rule which they have vested in the Badals’ hands. The Centre should take charge of levying taxes from the moneyed class.

Akalis have done nothing to improve the deteriorating economic condition of Punjab. Uncomfortable questions must be answered by the ruling class. When Punjab is under the burden of debt, the rulers are going on foreign trips, buying properties in other states and abroad, etc.

INDERDEEP KAUR, Mohali

II

The decision taken by the Punjab Government to increase the retirement age of its employees from 58 to 60 (re-employment) is unrealistic and mindless. The liability of the government will be much more after two years than now.

At least 4 persons can be employed against the salary of one retiring employee and the new appointees will be well-qualified. When the Badal government has not been able to improve the financial position of the state in the past 5-6 years, from where will the funds come in the next 2 years.

HN SINGH, Patiala

Nation’s pride

All right-thinking citizens surely do not like Parliament being converted into a fish market. The persons with obstructionist attitude and fissiparous tendencies can hardly be expected to see with clarity the national goals and people’s aspirations. Those who are bent upon exploiting regional sentiments cannot vouchsafe for national unity and interest. Parliament is a forum for debate reflecting the collective wisdom and the essence of a nation’s pride.

TEK CHAND, Una (HP)