The proposal to move from EEE to EET is yet another stupid idea being framed by our central planners who look only into data and statistics and fail to look at the people behind the tax statistics. With infrastructure development needing $320 billion, any move towards EET would only mean people would be unwilling to invest for the long term something which is needed for infra development. With savings rate in India amongst the highest in the world, any move to tax long term savings could mean jeopardizing the infrastructure story of India. Otherwise where else is the government going to get the money for Infra development? Because if long term savings are taxed why should one invest for the long term? TO PAY TAXES! Instead of following the "best global tax practices" it is time incumbents like the Trimurti [Manmohan Singh,Chidambaram, Montek Singh Ahluwalia] fly down to India and do some cost cutting in government expenditure, which is also responsible for the high inflation in the economy.
