A victim of pulls and pressures within the party, the draft report of the Rajnath Singh Committee on Vijay Kelkar's tax reforms recommendations is likely to be a pale shadow of its previous self.
After several rounds of advice from Union Finance Minister Jaswant Singh to committee head Rajnath Singh, the committee is likely to say that while the Kelkar committee recommendations are essentially sound, they should be implemented 'gradually.'
Singh is reportedly not happy about this, but has accepted what the finance minister has told him.
Rajnath Singh was, reportedly, told that though taxes on agriculture, proposed by the Kelkar panel, would not be accepted by the government in deference to political sensibilities, changes in tax structures in the capital markets should be permitted for they were required to improve the general health of the economy.
This means a definite victory for proponents of market reforms in the party, like present economy cell chief P N Vijay, and a defeat for those, like previous economy cell chief Jagadish Shettigar.
Shettigar had argued that capital markets and companies should be made to pay more to the government to partially subsidise and sustain lower rates of personal income tax and sops to the 'disadvantaged.'
Because of the impending Cabinet reshuffle, the Rajnath Committee has actually served as a springboard for political ambition.
Kirit Somaiyya, MP from Maharashtra, was originally not on the committee -- he made a formal request to BJP president Venkaiah Naidu for his inclusion in the committee.
Sensing that a view on the Kelkar Committee could be an important qualification in getting a ministership in the reshuffle, several have changed/watered down their stand on it.
The Rajnath Singh Committee's official report on the Kelkar recommendations will be submitted on January 23.Run-up to the Budget 2003
