Reader’s response to Budget 2009 expectations

The salaried classes have always been at the receiving end, after every budget announcement. No matter whatever are the pre-poll promises or the fact that they constitute one of the largest chunks of the taxpayer's, their pleas and agony have never been answered by the taxman. Progressive taxation methods should be adopted to collect taxes from the salaried class and the minimum slab for payment of income tax slab should be raised to RS.5 lakhs from the present sum of 1.5 lakhs.  Special incentives in terms of tax exemption up to the limit of RS.5 lakhs should be announced for investments in government bonds and treasuries. Similarly the tax slabs for housing loans, educational loans, house rent allowance and vehicle loan should be atleast tripled from the current levels.

Despite the gloom in economy, there has not been a substantial reduction in the cost of living. A business house or an entrepreneur does not suffer even in the worst bust, whereas the salaries class always suffers be it boom or bust. When economy prospers, salaried individuals are taxed heavily and the same continues even in boom, not to forget mentioning added tremors like salary cuts and forced sabotage. In developed countries, the state supports the people whereas it is vice-versa in a developing nation like ours. But the irony is that the people (read salaried class) in developed nations are always at lurch, but the state's stimulus ensures their livelihood and economical well-being of people, in developing countries even in full-blown recessions.

 Tax soaps and holidays for industries will hold no good, unless there is a friendly tax structure to the most valuable assets of businesses- human resources. The salaried class having embraced the concept of 'future mortgage' from western peers,  with the opening up of economy in the past, will not stand to gain any momentum  , should there be an imposition of more direct taxes or if their words pay no heed in the present budget. Special social security should be provided to salaried individuals, incase of job-losses rather than providing irrational wage increment to central government employees. There should be accountability for the wages paid to bureaucrats and politicians and this should be reviewed by the public at large.

The fact that an ace economist is heading the country for the second time will not suffice, unless it helps to achieve any major economic reforms. The best people to start with those reforms would undoubtedly be the 'always worst affected salaried individuals'.