5 Points Overlooked by FM

The article Five points someone overlooked made for an interesting reading. I believe that the FM gave each of these five proposals a due thought and rejected it. And here is why?

1. Excise Duty on cars: Passenger car segment has seen an overall growth of 23 % on the previous year and that too on a year when they have seen their input costs escalate. Across the sector they have reported healthy earnings and the sector is exiting enough to attract major players with the existing duty structure. So why reduce and loose revenue?
2. Focus on Tourism Infrastructure: The hotel industry was not waiting for a 5 year tax holiday to launch new projects. They are waiting because of the more than 80 clearances which they have to take from governmental organisations starting from Central to state government departments, to corporations to local police. If it is a high rise building you need a clearance from the Aviation department and if you are on an important road the Highways! Clear these hurdles and increase taxes. You will still not be able to discourage investors rushing in. The average room tariff of our hotels is after all comparable with the some of the costliest in the world!
3. Duty Structure on Petroleum Products: The case here is driven by the need to generate enough revenue for a rainy day. Imagine a situation when the Oil price stays stable at US $ 75 per barrel or above. The impact on our economy will be severe; may be the FM thought it prudent to pass on further cuts at that time! The real cut in this sector should come from states who never are convinced about it. May be we have to wait for the GST for an overall taxes reform in this sector.
4. Promoting savings: I do not agree that this has been missed out in the budget though the author may have his reservations as to the extent. tax deductions on Premium paid on Medical Insurance has been increased and the interest costs paid on educational loan taken for one's spouse and Children are tax deductible. Satisfying enough for a middle class person.
   
5. Abolishing DDT for Holding companies: This wish, I tend to compare with the wish for reduction in taxes on tobacco. Holding companies are vehicles which serve to enrich the investors and work around the regulatory, taxes network. To reduce taxes for such Holding companies will translate to encouraging their breed. Let us encourage more transparency and may be increase the taxes for these companies.