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

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From 50 Years Ago: The End of The Affair.

Editrial from Volume IX, No 37, September 14, 1957.

It was widely felt at one time that the Finance Minister would not be able to survive the storm raised by the tax proposals contained in his post-General Elections Budget. In the event, this fear has proved to be unjustified. In spite of powerful pressure from influential quarters – including certain important members of the Cabinet itself – the Finance Minister has ultimately succeeded in steering his tax measures across, but only by forgoing in tax revenue something like three to four crores of rupees of the additional receipts for which he had originally budgeted. A considerable proportion of the credit for this success must be given to the Prime Minister, but for whose positive support, Shri Krishnamachari might have found it difficult to survive the onslaught against him. The concessions that have had to be made in spite of this support provide some measure of the vigour with which the attack against the tax proposals was pressed. The amount of three to four crores of rupees cited above represents the cost of concessions made in the Wealth Tax and in the tax on railway fares. The loss in income caused by the amendments made in the Expenditure Tax Bill are not included as receipts from this tax will only accrue next year.

The amount of revenue surrendered is small. But one should not ignore the fact that some of the concessions made are of great significance. Since the new taxes have now taken final shape, it is appropriate that stock should be taken of the changes they have undergone since they were proposed.

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