Widening of tax net must for sustaining eco growth:Yechury

By Staff
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Kolkata, Jan 04 (UNI) CPI(M) Polit Bureau member Sitaram Yechury today emphasised the need for further widening the tax net, including the re-introduction of Long Term Capital Gain Tax, for sustaining India's GDP growth of over nine per cent.

Participating in an inter-active session with members of the city's premier Merchants' Chamber of Commerce(MCC)and later talking to media, Mr Yechury, also a Rajya Sabha member, said in order to sustain the present economic growth and overcome the grownig mis-match in the financial structures,there was an absolute necessity to bring more people in the country,including the rural rich,under the present tax structures.

"We are also actively considering to urge the union government, particularly the Finance ministry, to reintroduce the Long Term Capital gain tax from the next financial year itself," Mr Yechury later told newsmen adding that if reintroduced this would not only to help further widen the tax net, but also prevent the growing trend of making useless specualations in stock markets.

Making an introspection into the ongoing economic growths of India and China despite facing stiff international competition, the CPI-M Polit Bureau member felt that inadequate public fundings in the development of infrasturucture, education and health had forced India to lag behind its larger neighbour in terms of the overall growth of economy which was presently hovering around 9.3 per cent per annum.

Under the present circumstances and in order to bridge the widening gap between the rich and the poor, the UPA government at the Centre must strive hard and ensure substantial investment in public enterprises, Mr Yechury felt. He, however, made it clear the it would be grossly unfair to think that the Cpi-m or any other Left party was against the inflow of Foreign Direct Investment(FDI)to boost the national economy to a much higher level.

Also dealing at length about the current "mismatch" between the 'shining India and suffering India', the CPI-M thinktank blamed the alleged faulty economic policy of the subsequent union governments for this and felt that this had so far failed to upgrade the level of education and awarness among the general public on many issues and forcing vast majority of them living in dark.

Asked about his party's stand on agricultural issues, Mr Yechury maintained that in terms of payment of compensation to more than 11,100 landless farmers at Tata Motors'proposed small car plant site at Singur the largest amount had so far been doled out to them creating an unprecedeted example in the country.

Compared to the payment of only about Rs 100,000 for the acquisition of every acre of farm land in several states including Gujarat and Maharashtra, an amount of Rs eight to 12 lakhs were paid to the Singur farmer for every of land acquired from them, Mr Yechury claimed.

In addtion several new job prospectes were created for them and their families, he said.

About the present status of the proposed new labour laws,Mr Yechury refused to draw himself into any controversy but said his party wanted to go deeper into the issue before making any firm commitment.

"However, we are totally against any radical change of the present policy as it would be against the interest of the country's millions of labourers and general workforce in various fields," he claimed.

Earlier, MCC President Santosh Saraf in his welcome address mentioned several discripacines in government policies and sought his party's immediate intervention for the benefit of all and sundry.

UNI

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