This refers to the editorial "BJP's strange brainwave" (January 10). A banking transaction tax cannot work in isolation. It can be introduced only alongside eliminating cash and enabling every citizen to transact through a bank account by means of mobile phone, smart cards and so on. It will entail the creation of massive technological infrastructure before such transactions can be considered. Having said that, such a transaction tax is not a bad concept at all. If it is levied at different rates for different slabs of transaction volume, the concerns of equity and regressiveness can be addressed. On cascading, isn't this in some way already happening and accepted in the form of the profit margin of the seller at every stage? So why should the cascading effect of a banking transaction tax be such blasphemy? If exports do seem to become uncompetitive because of the tax, exporters can be given a drawback to some extent.
Kishor Kulkarni Mumbai
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
Kishor Kulkarni Mumbai
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number