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

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ASSAM-In Commemoration of a Peasant Revolt

than any scheme of concessions and incentives. The government, however, continues to harp on concessions for export promotion. Instead of strengthening the exporter, it turns him into a businessman who uses his talent to twist laws to his advantage. The story of section 35B which provides for weighted deduction of expenditure on export promotion needs retelling here. The original section provided a list of eight loosely worded broad heads of expenditure, which led to years of misuse and litigation with the Central Board of Direct Taxes. The list had to be reduced to only three heads last year to prevent further misuse. It is clear that the experience of the new section will repeat the earlier story on a larger scale. Exporters will buy turnover from one another to minimise tax liability and the purpose of linking tax incentives to additional exports will be lost. The new section will thus lead to considerable loss of revenue without achieving the desired results. There is implicit recognition of the possibility of misuse in the stipulation that deduction under this section will not exceed 10 per cent of the tax otherwise payable on income or gains derived from exports.

COTTAGE INDUSTRY-Bell-Metal Workers of Assam

sample study. The coverage gets further reduced in the case of small public iimited companies, which is admitted by the Reserve Bank itself. Besides the insufficiently representative character of the sample studies in regard to medium size companies, there is the further question of the coverage in respect of particular industries, particularly certain traditional industries like cotton and jute textiles, planta tions, sugar, etc. Unfortunately, the bench-mark study does not present a disaggregated picture and so it is not possible to make any comparison. It is to be hoped that in its further analysis of the data of the bench-mark study, the Reserve Bank will present separate estimates on (i) newer companies, (ii) medium companies, and (iii) individual industries, based on the coverage in the regular studies.

ASSAM-Just One Point

 expanding their involvement in East Africa. India supplied 50 per cent of Britain's imports in 1964; by 1977 the share had declined to 35 per cent, with Kenyan supplies already overtaking Sri Lanka's. In these circumstances, common action by tea producers is going to be very difficult to achieve. Talks towards an international agreement on stabilising tea prices have now moved from FAO to UNCTAD, with the next round of meetings being scheduled for November, but prospects are not very hopeful. There is solid resistance from the USA to proposals for a diversification fund, and none of the consuming countries are happy for tea talks to be involved in the Common Fund negotiations. It looks as though the 1977 rise in tea prices was merely a hiccup in their long-run decline.
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