Tuesday, July 04, 2006

Why I feel like pulling Chidambaram's dhothi

What is Chidambaram up to other than disinvesting a small stake in some loss or not-so-profitable making PSUs? He is using all his creativity in devising innovative techniques of widening the tax gain (not tax net) by squeezing the salaried tax payers turning them fast into bagasse.  It started with the tax (surcharge?) on cash transactions (even on ATM withdrawals). This was followed by the introduction of a Kathin (replacing Saral) to file income tax returns, which will be four pages of information on how you spent your already taxed money. This was later revoked under severe criticism. The latest is the service tax on postal money order. The time tested safe (may not be fast) way of passing money every month to your near and dear seems to be an ideal target to fatten the exchequer by imposing a service tax. This move of his pinches the middle class and lower strata of the society as others these days use a wireline transfer.

Our finance minister (monster?) may not be a cruel but still seem to take a cue or two from his profession – a lawyer. A lawyer does a micro analysis on his case to read in between the fine print and prove his point. Chidambaram’s mind set has not changed much. His budgets are full of complex equations on tax rate changes and not any new policies in the macro economic sense. He seems to be still looking at minor points in taxing the salaried class when Mulayam Singh and his ilk do not pay tax at all.

Now tell me if I am wrong if I feel like pulling Chidambaram’s dhothi?

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