This refers to Sunita Narain’s column “In search of the right growth model” (Down to Earth, September 26). The right growth model would be one that encourages higher consumption by the economically-weaker sections, while discouraging it by the more privileged. Towards this objective, a consumption tax can be considered that can be levied on the debits to personal account for anything other than specified investments in productive activities. The tax thus collected should be used exclusively to fund various subsidies to the poor and green projects. Such an approach can reduce excess consumption, thereby increasing supply of goods and thus reducing prices. It will also additionally help conserve the environment if the overall consumption comes down.
Kishor Kulkarni, Mumbai
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