Software firms should be asked to pay taxes -- Jairam Ramesh

Software firms should be asked to pay taxes -- Jairam Ramesh

NEW DELHI, FEB 23: If the software firms whose shares have set the Bombay Stock Exchange aflame are as competitive as they claim to be, there's no reason why they shouldn't be paying taxes. The Congress party in Andhra Pradesh was wrong to have promised more subsidies in its manifesto during the last elections, and there are politicians who still believe that free power brings votes. All these, and a lot more controversial statements, were made by Jairam Ramesh while chatting on The Indian Express' website `expressindia.com' this evening.

Is he a Mark Antony or a Brutus in the party? Certainly not a Brutus, Jairam responded, `but alas, with no Cleopatra in sight, can't claim to be a Mark Antony either!'

A sample of questions Jairam tackled during his hour's chat:

Makarand V. Vidwans: Will (or should) Congress support any subsidy cuts (if any) and other reforms proposals like taxing rich farmers or disinvesting Govt stake in PSU's in the forthcoming budget.

Jairam: Congress will not support taxing farmers. It supports disinvestment, but not in strategic companies like BHEL, ONGC and NTPC.

MSY: What is the reason of Congress's downfall?

Jairam: The BJP's rise, and our inability to respond to generational changes in UP, and Bihar particularly. THe Congress is strong elsewhere, but it is in these two states that it has got decimated.

Sundar: Given the compulsion of coalition politics, do you think that the present government can really do anything substantial to reduce the government's deficit?

Jairam: Yes. It is possible, but it will take time. Whether it is privatisation or it is in controlling subsidies, or in downsizing government.

R C Singh: Should octroi collection be totally abolished.

Jairam: Yes, I agree that octroi should be abolished, but local bodies must then be compensated by an equally buoyant source of revenue. The structure of local finances will have to be thoroughly overhauled.

Maj Gen MPS Mann: Why are the delayed payments to sugarcane growers beyond a reasonable time not payed with 18% interest?

Jairam: I could not agree with you more. Delayed payments to sugarcane farmers is a scandal, particularly in northern India. But this is part of the overall sugar policy that needs to be changed. We need to liberalise the levy-non-levy mix for sugar mills, and speaking purely from an economic point of view there is very little justification for the sugar subsidy that exceeds Rs 400 crore.

Sanjay Grover: How do you justify the Congress in Andhra promising more subsidies during their last election manifesto during elections?

Jairam: I don't justify it. I have taken the position that free power is politically dubious and economically disastrous. But there are still some politicians who believe that free power bring votes. But this is not true.

Sunil Jain: To get back to the question of politicians playing games, which you've kept ducking, when does it all stop?

What was the Congress' disagreememt with the IRA Bill as originally proposed. Moreover, you seem a lone voice in the Congress which is controlled by the old-style politicians.

Jairam: The Congress didn't oppose the IRA Bill. In fact, it actively got the bill through. But there were genuine fears on what privatisation would do to social insurance and to rural insurance. These fears had to be addressed. Also, do not forget that we are a political party and not the sole-selling agent of some MNC. We have political agenda and we always have to distinguish ourselves from our opponents. On balance, I think we have behaved more constructively in the opposition than the BJP behaved when it was in the opposition. It was the same BJP which torpedoed the Insurance Bill in November 1997. I think there are other voices -- our Chief Ministers are all reforms oriented and many younger elements are also reform-oriented.