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Review tax exemptions to corporates: Left
November, 14th 2006
Wants more for social sector, suggests tax on foreign currency purchase

The Left partners of the United Progressive Alliance (UPA) Government today demanded that the coming Budget should review all tax exemptions given to corporate houses and also to introduce a threshold level for imposition of inheritance tax.

They have also suggested a new tax on purchase of foreign currency and review of capital gains tax and securities transaction tax to generate more resources for social sector spending instead of the current practice of selling public sector undertakings to raise resources.

Articulating the Left viewpoint, the Communist Party of India (CPI) General Secretary, Mr A.B, Bardhan, said that "We have asked the Finance Minister to review all exemptions given to the corporate houses because the bigger groups are getting large benefits and as such it is a regressive model."

Speaking at an interactive session at a meeting organised by the Forum of Financial Writers, Mr Bardhan added that while the GDP is growing at more than eight per cent, actual poverty reduction between 1993-94 and 2004-05 was a meagre 0.7 per cent, according to the official NSSO data.

Suggesting amendments to the Special Economic Zone Act, he said that changes should be made to define land usage, compensation pattern for people whose lands are being acquired and ways to associate the displaced land owners with the economic activities that would happen in these zones.

 
 
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