FM’s dilemma
As the Association of Mutual Funds in India (AMFI) pushes for a rollback of recent tax hikes and the reinstatement of beneficial tax provisions, Finance Minister Nirmala Sitharaman faces a critical decision. The call echoes the dilemma faced by former Finance Minister Yashwant Sinha, who earned the nickname “Rollback Sinha” after reversing a controversial tax hike in 1998.
AMFI’s request is clear: reinstate the indexation benefit for debt mutual funds, preserve old STT rates, and adjust long-term capital gains tax rates to mitigate investor impact. The Finance Minister must weigh these demands against the backdrop of fiscal discipline and investor sentiment.
Sinha’s experience teaches us that in politics, adaptability may be a sign of strength, not weakness.
Whether Sitharaman heeds to AMFI’s request or hold firm remains to be seen.
Anger management class
Railways Minister Ashwini Vaishnaw recently lost his cool in Parliament after an Opposition MP pointed out that there were far too many derailments and accidents over the last few months.
The Opposition MP had called him a “reel minister”. Vaishnaw was quick to retort, saying “We do not make reels. We work, unlike some of you.” He also berated the Opposition for putting out fake videos on social media.
And if that was not enough, Vaishnaw took on the Opposition MPs pointing out that: “Not one Km of Kavach — the ATP — was installed in 58 years when the Opposition was in power.”
With tempers rising, the Lok Sabha Speaker Om Birla stepped in with suggestions on anger management. He told the Minister to not retort to name-calling especially when discussions were on the Rail Budget. And the Opposition MPs were castigated too for such name-calling.
Gadkari’s tax plea
In a surprising turn, Union Minister Nitin Gadkari penned a letter to Finance Minister Nirmala Sitharaman, urging the removal of the 18 per cent GST on life and medical insurance premiums. This plea has stirred the political pot, with the Congress seizing the moment to point out a potential rift within the ruling party, dubbing it a “sure sign of dissent”.
Gadkari argued that the tax burdens policyholders, making essential coverage less accessible. Meanwhile, the Opposition gleefully highlighted this public display of disagreement as evidence of internal discord within the government.
Will this letter escalate tensions further? Only time will tell.