The new deal on the taxation of debt funds and some other types is a mixed bag. There’s good news in the changes, and there’s some bad news too. Or rather, there’s neutral news and some bad news. I’m not saying good news because higher taxation on investment returns can never be good news for savers.
The neutral news is that even though there will be higher taxes, relatively few small individual investors will be affected, and that too to a small extent. The bad news is that this is a fundamentally unfair change that violates the basic principles of fair taxation. Any retreat from fair taxation never stops at the first steps — it always gets worse over the years.