Letters: Focus on infra, not FIIs...

The edit “Don’t delay GAAR” (September 4) rightly cautions the government that is obsessed with foreign direct investment (FDI) for short-term gains. The General Anti-Avoidance Regulation (GAAR), retro tax laws, the excise duty on gold imports and the tax on jewellery were proposed in this year’s Budget to increase the government’s revenue. It is surprising that measures that were deemed good for the economy a couple of months ago are now being seen as impediments to growth. The deferment of GAAR will only benefit foreign institutional investors who mainly speculate in the Indian stock exchanges and deserve to be taxed. The need of the hour is to attract FDI in the infrastructure sector that will generate more jobs and speed up industrialisation.

 

N Ramamurthy Chennai

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