Left proposes squeezing richer classes for taxes

The rationale for this is that Indians are among the least taxed, and a higher tax-GDP ratio would bring in more resources.

The Left wants to hike tax on securities transactions, a move that few would oppose in a buoyant market but is unlikely to find favour if the market dips. However, the view from the market is that the rate must be fixed and allowed to continue for the sake of stability. The last time around, there was opposition to a similar proposal from the Left and the government but market players eventually came around but demanded continuity.

Importantly, the Left plans to take the fun out of everyday life—quite literally, with proposals that will additionally tax F&B spending in hotels, apart from at discotheques and multiplexes. High value purchases should also be taxed, the Left feels. In other words, the Left wants the taxman’s radar to track big spending hoping this will ferret out black money. A proposal that will affect both the middle class and the rich is one for increasing excise duty on diesel cars, the argument being that no exemption should be given if these are for personal use. What the Left may not be saying is that it does not want big diesel car owners to get any concession.

Having recently shot down a proposal for disinvesting non-navratna profit-making PSUs the Left now wants that reserves in 57 profitable PSUs should be tapped and invested as part of the resource mobilisation exercise.