Monday, April 2, 2012

Indirect Tax and price Hike

T.V.Gopalakrishnan , Mumbai , says: The indirect tax hikes will further worsen the inflationary conditions.Though inflation is stated to be the worst enemy of poor people, nothing is done to contain inflation.The savings rate has been declining and if one analyses even the pesent savings, it will be from upper middle class and hign net worth individuals. The savings from poor strata of society and lower middle class people have been on the decline because of inflation and this trend is not good for the economy.Any economy which maintains low inflation and low cost of funds will always be performing well interms of GDP growth and unfortunately, this is one aspect which has been ignored by policy makers. Aam admi is suffering and the increase to this lot will be the result of price hike through indirect taxxes.There is paralysis in thinking and action and common man suffers.
(this is in response to an opinion poll in ET dated 2/04/12

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