V. Radhakrishnan, Chennai

Indian economy is said to be an agricultural based economy. Hence enough thrust is required to be given to this sector. The soaring prices of rice, wheat, cereals, vegetables and fruits is a great concern. First and foremost enough steps are required to be taken in this sector. The probable areas that could be restricted are a curb on exports - when there is a requirement within the country and there is no surplus, the question of export does not arise. Second, restriction in commodity trading [futures and options]. Third providing the required support to the farmers at the fag end to provide a minimum guaranteed support price with availability of good fertilisers and other ingredients for a robust growth in the agricultural sector. Second wish is on the tax front. Personal income tax should be definitely reviewed. Providing exemption of Rs.1 lakh towards savings should be reviewed. The minimum required amount towards any individual drawing salary has increased rapidly with soaring prices for domestic goods and vegetables to run his day to day running in family. The cost of schooling is also very high. Hence the limit of Rs.1.60 lakhs should definitely be doubled i.e. the salary income upto Rs.3.00 lakhs should be exempted apart from providing a scope for saving upto Rs.1.50 lakhs. The third is on the direct taxes front for the companies. Here the rates should be brought down considering the global downturn and the lesser the tax liability the higher the return would be to the stakeholders and thereby providing ample opportunity to the industries to prosper. The fourth is on the indirect taxes - charging of service tax for anything and everything only adds up the value to the customer. For example, even for purchase of a DD from a bank a person is required to pay service tax. You would appreciate that the banks are established to provide services and if those services are taxed on a poor customer, then the cost of such services only add upto his burden. Hence the Exchequer should not think about the revenue that is generated through this service tax but should see the real burden of a common man in availing those services the price that he is paying.

V. Radhakrishnan
kitchuradha@yahoo.co.in