Taxing the super-rich

India needs a predictable, stable, and moderate rate of taxation

Finance Minister Nirmala Sitharaman struck the right chord in the very beginning of her Budget speech when she stated that the government does not look down upon legitimate profit earning. This was a welcome remark. Businesses in India have been marred by licence raj for far too long and making money has not always been appreciated. To her credit, Ms Sitharaman extended the benefit of the lower corporate tax to all but 0.7 per cent of companies, though the expectation was that the benefit will flow to all. 

But the feel-good effect of the announcement did not last long, because