Are we Going Back to Pre 1991 Days?
WHAT is really happening? Supporters of retro tax laws (and there are many in India) would shout, 'who is Vodafone or UK or USA to tell us how we should tax? Who are they to interfere in our sovereign functions? We don't need foreign investment on their terms - in any case they are coming here to make money.'
Standards & Poor has downgraded us from stable to negative. Tax Laws are made draconian - this budget proposes minor offences in Customs non-bailable. Babudom has become powerful and all sorts of discretion vest with them.
Remember the idealistic days of our socialistic economy? Industrialists were penalised for excess production; there used to be a chief controller of exports; Income Tax used to be 98%; anyone contributing to the economy were considered traitors and anyone who helped in perpetuating poverty, were the patriots.
In 1991, an Economics professor became the Finance Minister and he changed the whole scene. Now, under the same professor as Prime Minister, are we driving fast in the reverse gear?
Anyway, according to the wise men in the Planning Commission, all that you need, to be called rich in India, is thirty rupees a day. To ensure that every Indian does not go beyond that level, you can do all your experiments.