Letter to BS: India needs a predictable, stable, moderate rate of taxation

Finance Ministers proposal of taxing the rich might be sound in principle but fails on the grounds of fairness and equity

Apropos the editorial “Taxing the super-rich” (July 9), Finance Minister Nirmala Sitharaman’s proposal to significantly increase the marginal tax rate for those earning more than Rs 2 crore may be sound in principle but fails on the grounds of fairness and equity. To begin with, Rs 2 crore per annum is too low a threshold in the present context, especially when our corporate sector has to attract talent at globally comparable salaries. Second, her target perhaps was the promoters of family-owned and managed enterprises. But the FM’s failure to distinguish them from the professionals has led to a situation that