This refers to the debate ‘Should the investment allowance be brought back?’, June 24. Corporate India has incurred huge investment in the past, encouraged by investment allowances and high depreciation rates. But a very large part of the capacities created were not utilised fully, so this has been a big national waste. If tax incentives based on capital expenditure are to be revived, they need to be linked to utilisation of capacity so that such a colossal waste can be avoided, and at same time, the incentives that are provided result in an industrial revival.
Narendra M Apte, Pune
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