According to the Government, it is in the ‘Public Interest’ to exempt Sachin Tendulkar from paying customs duty of 1.5 crores on the Ferrari that was gifted to him. Others think the decision has caused a loss of that much amount to the nation.

The public interest question should be easily resolved. There are a hundred crore of us. Sachin can ask us for 1.5 paise each. Some may refuse, some will pay more. I am sure that it will be easy for him to raise the 1.5 crores required to pay off his duty.

But is the nation losing 1.5 crores by exempting Sachin from paying taxes? Customs duty on import of cars is 105 percent. If you were offered a ‘gift’ and it turns out that you have to pay more than the price of the ‘gift’ to get it into India, what would you do? I’d sell off the gift and get the money into India. (Or better still, sell it off and keep the money in a Swiss bank.) Would the country get its 1.5 crores then?

The real loss the country suffers is not when it exempts Tendulkar from paying tax, but when it charges such extortionary taxes. For these tax rates are designed to prevent people from importing cars to India. These tax rates are designed to benefit car companies.