YOUR VIEW: Rs 10 tax on Rs 10,000 cash withdrawal unreasonable
FISCAL correction has taken a pause, the finance minister said in his budget, assuring that normal services would be resumed soon. Given P. Chidambaram?s hugely difficult agenda, he may have had little choice.Updated: Mar 02, 2005, 20:05 IST
What is the fuss about?
Finance minister Chidambaram has produced a budget to please the majority, avoiding controversy and radical ideas in order to preserve a fractious coalition.
And yet he has run into a controversy by putting a tax of 0.1 per cent on all bank withdrawals over Rs 10,000. It’s supposed to check black money, he says, but millions of honest citizens feel branded as dishonest.
But the step is not as anti-people as it is projected to be. For starters, how many times does a common man end up withdrawing Rs 10,000 in a single day? Secondly, while the move might affect the common man to a small extent it will also force the corporates to contribute more to the exchequer as they are the ones who deal with huge volumes of cash.
A closer look at the budget also reveals that there are a number of cut backs on earlier taxes and the common man has derived some sort of relief. The deficit obviously has to be met from certain other channels and the current tax proposal might aim at bridging this gap. In such a scenario, the hullabaloo over the tax proposal is totally uncalled for and the voices emerging are more egotistical than altruistic.