Shiban Khaibri
After less than one year, to be precise, exactly after ten months of demonetization, Modi played yet another master stroke in the form of our country’s tryst with the implementation of Goods and Services Tax (GST). Because of its uniformity across the country and the abolition of multi tax layers, nearly 17 or more, heterogeneous between the states , converting them into a single tax, the Prime Minister gave it another name because of its unique characteristics as Good and Simple tax. It is another simple name of One Nation, One Market, One Tax. The Prime Minister yet gambled big like demonetization in the interests of the country’s growth trajectory, if not with an eye on 2019 to emerge big in polls.
It is interesting to note that barring Jammu and Kashmir, all states have passed the necessary legislations and the state which finds it difficult even to pay in time the salaries and pension to its employees should dilly dally under the cover of “general consensus” even at the time of its launch. Jammu Chamber of Commerce and Industry has not only whole heartedly supported the GST and urged for its early implementation but voiced its concern for total collapse of trade and commerce in the state because of no or delayed implementation. In a matter of economy and commerce, no politics should be done with the bread and butter of the traders, was the feeling of the Jammu Chamber. On the other hand, doing abject politics in a non political issue, Kashmir Traders and Manufacturers Federation has termed the implementation of the GST as a “big conspiracy” to weaken the controversial Article 370. Astonishingly, talk of bullets has been made a part of its criticism by its spokesman threatening not only a shutdown of business establishments but to facing bullets rather than “allowing” its implementation. Right from morning tooth brush – paste, morning tea to night dinner, almost every item including mutton (sheep) and fish are imported into the state. The valley is more susceptible to imports as even a temporary suspension of the traffic on the National Highway causes shortage of essential and other commodities there including petroleum products. Just within a few days, acute shortage of essential commodities shall unfortunately take place in the state. A lay man asks as to how this Article 370 was going to be eroded by streamlining and straightening the multi tax structure into one uniform tax regime. If opposing the GST was not dictated by petty politics in Kashmir, what else could it be termed? Just from July 1 to 3, how many crores of Rupees as loss, the business community has suffered in the state should open the eyes of its unwarranted opposers besides denying the essential commodities to customers being fraught with grave consequences. Kashmir business circles have to visualize it and see that due to their meddling of politics in this tax structure, they were denying the benefits to Jammu and Ladakh trading and business community.
GST, on the other hand, was going to help traders, businessmen and small entrepreneurs. Just like demonetization, this is the biggest ever, rather first of its kind in bringing about a much needed tax reform in the country. It was aimed at accelerating economic growth in the very near future but do away with the repulsive “Inspector Raj”. As is well known, the Central Hall of Parliament witnessed the rollout of the countrywide single taxation system from the midnight past June 30 for implementation. Besides creation of a paradigm of One Nation One Tax One Market, it had the potentialities of upping the business turnover; rewrite the rules of business and affording benefit to the common man. As the government has all along been holding that it is farmer friendly in its policies and approach, the GST council, the Head of which is the Finance Minister, decided in favour of reducing the GST rate on fertilizers from 12 to 5% and on exclusive parts and spares of tractors from 28 to 18%. It, therefore, was surely going to reduce any burden on the farming community.
On Aug.15, 1947, India’s first Prime Minister had delivered a speech in the Central Hall of Parliament, “Long years ago, we made a tryst with destiny ………. At the stroke of the midnight hour……….we step out from the old to new ….” In the same way and perhaps in the same manner, India achieved “freedom” from the scourge of multi layer tax regime nearly after seven decades of obtaining independence. A revolutionary step was eligible to be celebrated in the same Hall of the Parliament as it was the victory of the nation, the country and above all that of our federal structure, all in democratic and constitutional way. The argument that the two events could not be equated may sound logical to many but not to all. To call a spade a spade, we got independence on Aug.15, 1947 not without paying a huge price that of the creation of Pakistan on our western and eastern sectors. The partition was agreed to mainly by two leaders M. K. Gandhi and Pt. Nehru who succumbed to the arm twisting of communal Muslim League hence creation of Pakistan, eternal enemy of India. The partition resulted in migration of millions as also killings of millions of people. Humanity got violated and defaced. Not going into details, some political leaders should not continue to live in the “deeds of the past”, but do something practical and beneficial for the country and the countrymen. “We fought for the independence”, “We sacrificed our comforts”, “we went to jail” etc are historically true but the repetitive rhetoric seems to be over run and out of tune. And the “grateful” nation repaid the cost of “yeomen services” rendered by voting the concerned Party to power for decades consecutively.
It seems strange that the Congress Party whose brainchild was this GST and which because of coalition compulsions or lack of political will did not proceed with it but supported its passage in the Parliament in 2016, should now raise objections and boycott midnight Parliament session .It made its position and image vulnerable before the public and committed big historical blunder, more so, when its many partners in “Maha Gathbandhan” against Modi, attended the function. TMC”s Mamta Banerjee, however, as usual like in demonetization , saw in it an epic blunder and supported the skip. So did the Communists, the bête noire of Modi- the AAP, DMK and the RJD. The President praised the revolutionary tax reform in the shape of GST, so did the Prime Minister. Odisha CM Naveen Patnaik was all praises for the GST. Nitish Kumar said that all opposition parties should support the GST and participate in its launch. He sent a small delegation led by one of his senior Ministers to attend the function. JD(S) was represented by Devi Gowda. NCP was led by its leaders Sharad Pawar and Praful Patel. But Rahul Gandhi was critical as usual by saying, ” …Like demonetization , GST is being executed by an incompetent government… We would like to hear more from the Congress Vice President in a TV debate exclusively on the subject to get enlightened.
The fact , however, remains that the master stroke of GST and the confusion in the select opposition parties resulted in a division in the “unity” of the opposition which was clearly visible in the Central Hall of Parliament.. Skippers’ expected leeway to attack the government in the very immediate future is going to be preempted by the government in educating people extensively and thus sell the GST to its hilt, of course, to augment revenues to result in speedy growth and development of the country.
Like every economic reform, the implementation of GST would not be without some initial humps and problems but like demonetization, the same were expected to be resolved gradually. In the words of the Prime Minister, of course with a bit of laconic humour, “Even if you have a trusted Doctor who does the numbers for your glasses, you always needed a couple of days to get used to a new set of spectacles.” However the slab of 28% tax on some items of use are considered on a higher side but the consolation that they were not very much necessary for daily use hence avoidable, leaves not much behind to criticize the very concept. Chewing gums, paan masala, aerated water , deodorants, molasses, waffles coated with chocolates, butter and fats, ceramic tiles etc are not the items of very urgent use but shaving cream, water heater, dish washer, washing machine, automobiles, motor cycles , paints, make up preparations, shampoos etc could have been placed under a slab definitely less than 28%. However, it is the duty of the select opposition led by Congress to see positives more and try to resolve negatives with mutual cooperation rather than keeping on criticizing and attacking.
feedbackexcelsior@gmail.com
Follow our WhatsApp channel