Revised stance on LTCG
Apropos ‘Capital loss’ (August 8), the government’s revised stance on capital gain tax not only addresses immediate financial concerns but also reflects a more thoughtful approach to tax policy, acknowledging the diverse economic realities faced by people. But there are fears that the new regime might increase secondary market sales as investors may not retain their properties for too long. However, the government’s move underscores the importance of nuanced policy-making that considers both economic principles and public sentiment. The restored indexation benefit is a welcome relief for many, reaffirming the government’s ability to adapt and refine its fiscal policies in the face of legitimate public concerns.
N Sadhasiva Reddy
Bengaluru
Oligopolistic market
This refers to ‘Cement consolidation’ (August 8). Any organisation has a bounden duty to fulfil its organic objective of staying in business, as many employees bank on it for their livelihood. Oligopolistic firms are prone to ups and downs because of cut-throat competition. But then, the leadership is expected to step up to the plate and never call it quits. India Cements, as a firm under oligopoly , should have done concrete perspective planning to be in the business.
S Ramakrishnasayee
Chennai
Securing UCBs
This refers to ‘Towards more robust urban co-operative banks’ (August 8). At a time when financial irregularities and embezzlements are frequently occurring in this segment, on account of weak systems and procedures and political interventions, appropriate regulations and oversight are indispensable. The prompt corrective actions enforced by the banking regulator in the past in scheduled commercial banks have enabled them attain the specified parameters concerning capital, NPA, business, and profitability. The proposed prompt corrective action and its enforcement in urban co-op banks will pave the way for them to grow robustly.
VSK Pillai
Changanacherry, Kerala
Weightage in CPI
Apropos ‘Govt mulls trimming weight of food in the CPI basket’ (August 8), there is definitely a need for revision of items included in the consumer price index (CPI) list. But regarding a downward revision of weightage for food and beverages, that too a substantial one, needs to be well thought over and any knee-jerk reaction to the recent surveys only will bring in a distortion that would make the CPI unrepresentative of the actual ground reality of the importance of “food and beverages” in the lives of the people. The recently observed skew in consumer spending towards non-food items could be a temporary phenomenon. CPI basket should not be changed based on temporary lows and highs of items in the basket. Changes may be made based on data spanning at least a decade or more.
Kosaraju Chandramouli
Hyderabad