ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Growth through Inequity

Skylark 284 Shahid Bhagatsingh Road Grams Econweekly Editor Krishna Raj Assistant Editors Gautam Navlakha Ignatius Chithelen Editorial Staff K Vijayakumar, Cleatus Antony Advertisement Manager Meera Mohan Manager T D Sell Growth through Inequity THE process of bending fiscal policies to the advantage of the rich has been going on for many years, but Finance Minister Vishwanath Pratap Singh obviously had instructions from his Prime Minister to go the whole hog in the Budget for 1985-86. Accordingly, the maximum marginal rate of income-tax has been reduced from 61.9 per cent to 50 per cent; the surcharge on personal income-tax has been abolished; the exemption limit for wealth-tax has been raised to Rs 2.5 lakh (with a further exemption of Rs 5 lakh for wealth in specified forms), the rates of wealth- tax have been slashed and the highest marginal rate has been brought down from 5 per cent to 2 per cent; the estate duty has been done away with altogether; and the basic rate of income-tax applicable to companies has been lowered by 5 percentage points with the promise of a further 5 percentage point reduction next year and the abolition of surcharge and surtax the year after. True, the exemption limit for personal income taxation has been raised from Rs 15,000 to Rs 18,000, but the tax relief to those at lower taxable income levels

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