Tax-cut booster

This refers to ‘Bold tax move needs matching reforms’(September 23). The Finance Minister cutting corporate tax rates will help push exports and enhance the cash inflows of India Inc. It will ease the debt-servicing capacity of corporates and pave the way for a significant reduction in bad assets in the banking sector. Though the government has to forgo a substantial ₹1.45 lakh crore in tax revenue, the Finance Minister’s action will create a multiplier effect in the economy, besides boosting the sentiments of investors.

However, it is imperative for the government to improve tax collection by plugging the loopholes in the tax collection system. Simultaneously, the government has to rapidly translate the various announcements into action to speed up the process of growth and enable the economy to come out of the slump.

As in the case of corporate taxes, the government must also look to further cut down the income tax rate, besides rationalising the slabs and exemptions. Albeit affluent, rich farmers do not pay income tax. The government must look to bring these farmers into the tax net.

The much anticipated ‘Howdy, Modi’ event at Houston, where Prime Minister Narendra Modi and US President Donald Trump jointly addressed the Indian Diaspora, showcased in unequivocal terms the deepening bilateral relationship between the world’s oldest and largest democracies. While Modi used the event to defend his government’s decision to revoke Article 370 which conferred special status to Jammu and Kashmir, President Trump used the occasion to enlist the support of the highly influential Indian community in US to bolster his chance in his re-election bid to White House in 2020. It is hoped the growing bonhomie between Modi and Trump would help both the countries resolve the trade differences between them sooner than later.

Sholavandan, TN

With reference to the editorial ‘Dry spell’ (September 23 ), the decelerating trends in the primary market will definitely have an adverse effect on the growth and liquidity of mid-size companies and start-ups. Due to their inability to offer any collateral to banks for raising long term and working capital loans, most firms in this segment get equity support from venture capital and PE investors by diluting their holdings in the business to a large extent, in anticipation of higher valuations. The preferred exit for majority of the start-ups happen through IPOs on the designated small listing platforms of stock exchanges. Unless the diminishing investor confidence in trading in these stocks is restored, the growth of the primary market and sustainability of these companies will be at stake.

Bengaluru

This refers to ‘Onion prices surge to ₹70-80/kg' (September 23). Thanks to the nation’s highly ‘privileged’ hoarders and brokers as also the government’s failure to take timely action, an artificial shortage of onions has been created across the country.

But if the government fails to ensure proper supply and control the price for end-users, it may have to pay a heavy political price during the forthcoming Assembly elections in Haryana and Maharashtra.

Panchkula (Haryana)

To all appearances, “Howdy, Modi!” event in Houston was a big success. It made a magnificent spectacle and a visual treat. Prime Minister Narendra painted a rosy picture of India to claim credit for himself and showcase the ‘world’s largest democracy’ to the world. Only by looking at India through rose-coloured spectacles we can agree with Modi’s assertion that ‘everything is fine in India’. Seeing impoverishment, joblessness, farmer distress, mob lynchings, jailing dissenters and the like and speaking about them are nowadays left to ‘anti-nationals’ and ‘urban Naxalites’.

Maruthancode, Tamil Nadu

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