T N Ninan: Tax, don't frighten, investors

There are demands that the FM look for revenue sources like long-term capital gains on shares, but such a tax will have risks - besides obvious stock market impact, it could scare overseas investors

The finance minister may well be right in the three claims that he made while taking part in a parliamentary debate on Thursday: that reforms like the goods and services tax (GST) will pay off in the medium and long term; that India has been the fastest-growing large economy for three years; and that some recent economic data point to an upswing in economic activity. Unfortunately, none of these will mitigate the complexity of the challenges facing him as he prepares his fifth, and this government’s final, Budget.
 
First, there is oil — whose prices have risen to $68