NEW DELHI, Oct 22: The Government has shot off a stern letter to Twitter CEO Jack Dorsey, conveying its strong disapproval over misrepresentation of the Indian map, and asserted that any attempt by the micro-blogging platform to disrespect the country’s sovereignty and integrity is totally unacceptable.
In a strongly-worded letter, IT Secretary Ajay Sawhney has warned the platform that such attempts not only bring disrepute to Twitter but also raises questions about its neutrality and fairness as an intermediary.
IT Ministry sources told PTI that Sawhney shot off a stern letter to Twitter CEO Jack Dorsey, conveying strong disapproval of the government over misrepresentation of map of India.
Earlier, Twitter had shown geo-location of Leh in Jammu and Kashmir, People’s Republic of China.
The IT secretary, in his letter, has reminded Twitter that Leh is the headquarter of Union Territory of Ladakh and both Ladakh as well as Jammu and Kashmir are integral and inalienable parts of India, governed by the Constitution of India.
The government had asked Twitter to respect the sensitivities of Indian citizens, and has also made it clear that any attempt by Twitter to disrespect sovereignty and integrity of India, which is also reflected by the maps, is totally unacceptable and unlawful.
Issuing a stern warning, the IT secretary has said that such attempts not only bring disrepute to Twitter but also raises questions about its neutrality and fairness as an intermediary. (PTI)
Govt issues warning to Twitter; conveys strong disapproval over map misrepresentation
Cybersecurity tops corporate priorities in India now: Study
Bengaluru, Oct 22: Organisations in India are seeing a significant increase in the cybersecurity challenges they face amid the shift to mass remote working, a new study by Cisco shows.
According to the study, 73 per cent of organisations in the country have experienced a 25 per cent or more jump in either cyber threats or alerts since the start of COVID-19.
Cisco’s’Future of Secure Remote Work Report’revealed many Indian organisations were unprepared to make the accelerated transition to a remote workforce at the outset of COVID-19.
About two-thirds (65 per cent) of organisations adopted cybersecurity measures during COVID-19 to support remote working.
The studyis based on a survey of over 3,000 IT decision-makers globally, including over 1,900 respondents across 13 Asia Pacific markets, including India.
It highlights the cybersecurity challenges companies faced as they shifted the majority of their employees to a remote working arrangement in a really short period of time.
With users connecting from outside the corporate walls,secure access defined as the ability to verify identity and establish trust no matter how, where, or when users log in, is the top cybersecurity challenge faced by the largest proportion ofIndianorganizations(68 per cent)when supporting remote workers.
Other concerns raised by organisations include data privacy (66 per cent) and protection against malware (62 per cent).
“Now, as remote work continues to garner traction, organisations are turning their attention to building a robust cybersecurity foundation, with cloud security emerging as the top investment for 31 per cent of companies in reinventing their workplaces post COVID-19,” saidVishak Raman, Director, Security Business, Cisco India & SAARC.
Endpointsare a growingchallenge for organisationsto protect,as users connect fromtheir home Wi-Fi or use their personal devices to connect to corporate applications.
About two in three respondents stated that office laptops/ desktops (66 per cent) and personal devices (58 per cent)poseda challenge to protectin a remote environment,followed by cloud applications at 42 per cent, according to the study.
One trend that emerged in recent months is that a hybrid workplace where employees move between working remotely and in the office is the future.
The findings of this study further underlined that.
Over half(53 per cent) of the organisations in Indiasaid they expectmore than half of their workforceto continueworking remotely post-pandemic.
This compares to an average of just 28 per cent of organisations with more than half of their workforce working remotely before the pandemic.
The good news is that as businesses prepare for this hybrid workplace, cybersecurity now tops corporate priorities, with84 per cent of organisations in India saying that cybersecurity is now a top priority for them.
What is even better is that they are translating this into concrete action.
The study highlights that 77 per cent of organisationsin the regionplanto increase their future investment in cybersecurity due to COVID-19.
There are still challenges, though, that need to be addressed.
While almost all(97 per cent) organisations have made changes to their cybersecurity policiesto support remote working,further simplicity and educationare needed.
According to the study, 60 per cent ofIndian organisationssaid thathaving too many tools/ solutions to manage was a challenge faced in reinforcing cybersecurity protocols for remote working, followed by a lack of employee education and awareness (55 per cent).
“Deploying multiple cybersecurity tools reinforces a fragmented and complex security environment that is prone to risks arising from human error. This calls for the implementation of a comprehensive and integrated security approach that can provide a seamless experience for users as well as IT teams,”Ramanadded. (PTI)
Daisy Edgar-Jones to star in ‘Where the Crawdads Sing’
Los Angeles, Oct 22: “Normal People” breakout Daisy Edgar-Jones will headline the upcoming drama movie “Where the Crawdads Sing”.
Based on author Delia Owens’ 2018 novel of the same name, the film hails from Reese Witherspoon’s production company Hello Sunshine.
The story takes place in the mid-20th century South and centres on Kya, a young woman who is abandoned by her family and has to raise herself all alone in the marshes outside of her small town.
However, when her former boyfriend is found dead, Kya is thrust into the spotlight, instantly branded by the local townspeople and law enforcement as the prime suspect for his murder.
According to Variety, Olivia Newman will direct the feature from a script by Academy Award-nominated writer Lucy Alibar.
Reese Witherspoon and Lauren Neustadter are producing for Hello Sunshine with Elizabeth Gabler, Erin Siminoff and Aislinn Dunster are overseeing the project for 3000 Pictures.
Earlier this year, Edgar-Jones and actor Paul Mescal earned praise from the critics for their performances in Hulu and BBC Three’s “Normal People”.
The show, an adaptation of author Sally Rooney’s critically acclaimed and bestselling novel of the same name, follows the tender but complicated relationship between Marianne and Connell from the end of their school days in a small town west of Ireland to their undergraduate years at Trinity College. (PTI)
Aurobindo Pharma gets USFDA nod for pain treatment injection
New Delhi, Oct 22: Drug firm Aurobindo Pharma on Thursday said it has received final approval from the US health regulator for its generic Acetaminophen injection, used in the treatment of pain in adult and paediatric patients.
The company has received the approval from the US Food & Drug Administration (USFDA) to manufacture and market Acetaminophen injection, 1,000 mg/ 100 mL single-dose vial, Aurobindo Pharma said in a BSE filing.
The product will be launched in December 2020, it added.
It is a generic version of Mallinckrodt’s Ofirmev injection.
According to IQVIA data, the approved product has an estimated market size of USD 339 million for the twelve months ending August 2020, Aurobindo Pharma said.
Acetaminophen Injection is indicated for the treatment of mild to moderate pain in adult and paediatric patients 2 years and older. It is also set to treat moderate to severe pain with adjunctive opioid analgesics in adult and paediatric patients 2 years and older, and reduction of fever, the company noted.
This is the 75th abbreviated new drug application (ANDA) to be approved out of the Unit IV formulation facility in Hyderabad, used for manufacturing injectable and ophthalmic products, it added.
The company now has a total of 449 ANDA approvals (421 final approvals and 28 tentative approvals) from the USFDA, Aurobindo Pharma said.
(PTI)
Ashok Leyland launches ICV trucks under Boss range with BS-VI powertrains
NEW DELHI, Oct 22: Commercial vehicle major Ashok Leyland on Thursday said it has launched BS-VI compliant Boss LE and LX trucks with price starting at Rs 18 lakh (ex-showroom Delhi).
These two vehicles will address the 11.1 tonne to 14.05-tonne gross vehicle weight (GVW) market, Ashok Leyland said in a statement.
Customers can choose from multiple combinations – loading span from 14 feet to 24 feet and body type options of high side deck, fixed side deck, drop side deck, cab chassis, container and tipper, it added.
“We have been on track with our plans, despite the challenging year we are all facing. Starting with the AVTR launch, followed by DigitAL Nxt suite of digital solutions, BADA DOST and now the BOSS ICV trucks, we aim to give our customers the latest and most advanced products and technology,” Ashok Leyland MD and CEO Vipin Sondhi said.
With this launch in the Boss range, the company’s ICV offering is now one of the best in the market, he noted.
“ICVs are seeing a spurt in demand and this is the best time to introduce our proven I-Gen6 BS-VI technology in one of our best-selling brands in the portfolio. These launches will further strengthen our portfolio and help us achieve our vision of being in the global top 10 CV makers,” Sondhi said.
The Boss platform offers multiple applications, including usage for parcel and courier, poultry, white goods, agri perishable, e-commerce, FMCG, auto parts and reefer, among others.
Customers can choose from two cabin options and expect multiple improvements over BS-IV technology like up to 7 per cent higher fluid efficiency, up to 5 per cent higher tyre life, up to 30 per cent longer service intervals and up to 5 per cent lower maintenance cost, Ashok Leyland said.
Boss ICVs will be available as a fully-built option with ergonomic and safety features for the driver. It comes bundled with digital solutions like i-Alert, and remote diagnostics. (PTI)
Issuing fake passes at Lakhanpur
Taking undue advantage of the people wanting to save on time while entering the UT of Jammu and Kashmir at gateway of Lakhanpur, two cops were found issuing fake passes and were subsequently arrested . One Inspector too was placed under suspension for dereliction of duty. It is matter of concern that those who were supposed to maintain strict vigil and take care in ensuring proper entry of people after fulfilling mandatory formalities, not taking more than 10 minutes at all, were resorting to such a practice . It also adversely reflects the temperament and approach towards respecting order and obeying rules by some travellers that just to cut down on five to ten minutes, they should encourage getting such illegal ”back entry”. Undesirable elements , terrorists, drug peddlers and criminals could steal such short cut opportunity to enter the UT which could be dangerous for life and property of the people.
It is only when higher authorities in Police Department received numerous complaints about issuing fake passes to travellers that the said action was taken. In other words, the vigilance radar of the police force at such a strategic entry point is evidently nonexistent that only after lot many complaints by the people reaching the higher ups in the Department drove them to take the said action . Moreover, the authorities should make the entry point of Lakhanpur more facilities oriented.
Lockdown gone but not the virus
Those of us who least expected the Prime Minister exclusively talking about the continuing lurking dangers of the COVID-19 pandemic during his address to the nation on Oct 20, in the evening, must have realised the importance of the subject since he, like a Head of the family , shared concerns and precautions about the Coronavirus with the family members of 135 crore people. Notwithstanding the habitual criticism of some opposition parties about his not ”touching other topics”, it must be realised that it was the life of an average Indian that mattered more than any collateral issues to be debated and discussed. Prime Minister Narendra Modi’s address was not only absolutely timely but of great value looking to the prospects of people feeling complacent about continuing to follow strictly the precautionary protocol against the Coronavirus in the light of series of approaching festivals. Psychologically, some people may have started feeling somewhat relaxed in respect of observing precautionary code since lockdown was completely lifted . Linking lifting of lockdown with feeling somewhat insulated could prove very costly not only for an individual but bringing home a basket of troubles of menacing proportions for family , in particular children and the elderly, is what passionately was shared by the Prime Minister in his address with the countrymen. Said the Prime Minister with a cautionary note that “Lockdown has ended but the virus is still there”.
Going by the expert medical advice , if there were any effective measures even better than an expected vaccine , they were – wearing a mask covering nose and mouth, keeping physical distance of at least two metres and frequent hand washing. The same advice was repeated by the Prime Minister and while it was neither any costly affair nor any sort of giving any type of trouble yet it was a guarantee against contracting any infection which could prove fatal. Why should the country not know and feel proud of as well that India had ”managed” the virus in a far better way than most of the advanced countries where fatalities per million were 600 as against 83 in India. Again, on a comparative analysis , where there are 25000 COVID cases per one million population in countries like the US and Brazil, the corresponding figure in India is 5500 . On the treatment side, India has managed a bedding capacity of 90 lakh patients and there are 12000 quarantine centres helped by as many as 2000 laboratories. These figures put India at a very comfortable and commanding position but again, there was no room , absolutely nothing of the sort, for resorting to any laxity which could prove only perilous .
We know a multifaceted and multi cultured country like India has special significance for our festivals which could be celebrated fully even amidst the pandemic, though advisable with a comparative subdued profile, but the spirits could get dampened due to application of laxity in precautionary norms, and hence both the things needed to be kept in mind. The Prime Minister made it clear that until a vaccine is found, for which lot of work was underway , people needed to be careful and never be callous . Removing any room of speculations about reaching out to the vaccine individually, whenever launched, the Government was making all efforts to ensure that it reached every Indian. Invoking the Holy scripture of Ramcharitmanas and sage Kabir not to take fire, enemy and disease lightly , the Prime Minister advised to continue to remain in precautionary mode with no let up or relaxation.
“Gupkar Alliance”with dubious agenda
Shiban Khaibri
A famous quote fits into the mechanisations of the ”Gupkar Club” that “Inconsistency is the only thing in which people are consistent.” Did we hear it from the person whose three generations have ruled Jammu Kashmir and Ladakh State, openly soliciting the help of a sworn enemy of this country in restoring that contagious Article 370 back to the erstwhile state of Jammu and Kashmir? A three time Chief Minister, a former Union Cabinet Minister and presently a member of the Parliament knowing fully the constitutional powers of the supreme democratic and law making seat of the country where abrogation of this Article was duly passed, asking China to get that back is tantamount to asking and enticing that country to attack India so that under ”subjugation”, this country and its supreme authority Parliament was pressurised into restoring that Article again . Whatever the cause, reason or demand and of whatever urgency, to have the same fulfilled by asking a country which has usurped our thousands of kilometres of territory and with whom this country , despite strains of COVID-19 pandemic, continues to be presently engaged in a standoff at the eastern Ladakh borders, cannot be called any damn democratic dissent or freedom of speech or the justified purgation of any political , social or religious feelings . Had it been done in any other country, Dr.Farooq Abdullah would have tasted the pudding . It is India with traditional tolerance nurtured for thousands of years that he continues to be not booked under the laws of the land.
After all, what was so important , so overriding , so much cardinal to the extent of being something related to divinity about this Article that such a hullabaloo is raised only by those whose monopoly to rule this part of the country seems to be in doldrums . Not a voice was raised , not a bullet was fired, not a single protest in tokenism was held anywhere from the erstwhile state or the country to mourn the demise of this purely temporary, short term and provisional Article. No “Barood Ka Deir ” it proved in annulling – nor anyone’s hands got burnt – nor were any shoulders found less in number to hold and support the National Flag. The cat came out of the bag to unravel how under its garb, rampant corruption, nepotism, secessionism and milking New Delhi flourished. It surfaced and dawned that under its garb, the biggest land scam of this century coupled with extraneous ambitions – the Roshni Land Loot took place causing hundreds of crores of Rupees loss to the public exchequer in Jammu and Kashmir. Under its garb, even the most important laws like the Right to Information Act, Prevention of Corruption (Amendment) Act 2018 were not made applicable to the erstwhile state besides all the 840 central laws, why? Why should we not believe that this Act was being treated as an immunity to do all wrongs without any accountability?
An interview by an anchor of a news channel of Dr.Farooq a few months back greatly enraged him when the anchor asked him whether he was an Indian . He shot him back by asking whether he himself was an Indian and that he (Dr. Farooq) needed to produce no certificate to that end. Today, the particular anchor’s question holds more legitimacy and blasts his feigning of Indian patriotism as no Indian worth the salt, irrespective of how much aggrieved and having been subjected to unfair treatment, can requisition the aggression of a belligerent neighbour to redeem him or her. Unless one was Congress person like Mani Shanker Aiyer who in Pakistan, beseeched that country “Remove Modi to have Indo Pak talks ” , the exact words used “Inn ko hatao aur hammey lao”. He saw in Pakistan a superior International Authority to be wielding as much (legitimate) power as to dislodge a constitutionally and democratically elected Indian Prime Minister and instead install Congress rule in India to let the talks between the two countries be ”meaningful”. He found himself so much deluged with the love and preference for that country that he declared that “I get more love in Pakistan and (more) hatred in India .” For that matter , even Salman Khursheed who wished and desired to live in Beijing forever and who, on incursions by Chinese PLA during UPA 1 and 2, and perhaps on the advice of the then Prime Minister Dr.Manmohan Singh that “Hammey Cheen key 34 km Bharti Elaqey ko hathianey ke baat ko toole nahin dena chahia” or we should not overplay China’s incursions deep 34 Kilometres into our territory, had said on April 26, 2013 in that connection that “one little spot of acne cannot force you to say that it is not a beautiful face”. Chinese incursions looked to the then External Affairs Minister as just a small acne in a ”beautiful face”. What skin disease can he call in respect of Chinese ”beautiful face” in usurping 48000 sq.Kms of Indian Territory right from 1962 to 2013?
We can have another example that of Shashi Tharoor , the unique find of Congress, who recently in Lahore Literature Festival praised Pakistan and denigrated India and Modi government in Particular and belittled his own country keeping that smiling face projected as if showering praises on his own motherland in the land of our sworn enemy which was trying to incessantly harm this country with its state sponsored terrorism and hate . Not only that, Tharoor chastised Indian Government for organising the Howdy Modi event. Some say that an intellectual Tharoor praising the terrorist country so much must be for reasons of seeing some “bright prospects” in that country to better his “personal life”. May be for these reasons, Congress is supporting the stand of the 6 parties’ joining hands calling it “People’s Alliance for Gupkar Declaration”. P. Chidambaram of Congress currently on bail, has openly supported the Gupkar Club instead of out rightly condemning the NC move in seeking support of the Dragon for “restoring J&K ‘s status”. In all such ”support” under circumstantial compulsions to the moves of the Gupkar Alliance (read) Club from Congress , Modi hate is conspicuous and palpable even if it leads to committing Hate India.
What is the composition of these six political parties ”pledging to work” for the restoration of the UT’s pre- August 2019 constitutional status? Was it a reaffirmation of the All Jammu and Kashmir Muslim Conference in attempting to unite people by exploiting religious feelings the way it was done in 1932? Was this so called alliance an attempt to fill the vacuum created by the virtual exit of the All Parties Hurriyat Conference from the scene after its patriarch Syed Ali Shah Geelani hung his boots, perhaps, realising where the movement had driven Kashmir to ? What political base, as on date, these six parties enjoy in Jammu and Kashmir, was fairly known when Dr. Farooq Abdullah contested Srinagar Parliamentary seat . About the PDP , less said the better , let that party prove its credentials even in its base Anantnag district let alone anywhere else in the valley. About rest of the ”political parties”, less said the better. That the alliance’s battle was a constitutional one is again attempt to hoodwinking the people as seeking open intervention from China in restoration of Article 370 cannot be called constitutional by any yardstick. However, the most important thing about what the Gupkar club is up to is, whether these two parties have asked their cadre in Jammu and Ladakh whether they supported the move of the leader of this ”Alliance” in reaching out to China in getting the Article 370 back . If not , how can the Alliance claim any legitimacy in what it was aiming at. Last but not the least , how many Hindu, Sikh , Buddhist and Christian leaders from Kashmir, Jammu and Ladakh were in the Alliance and supporting what this conglomeration was striving for ? In other words, more or less the agenda is the same as was set for the Muslim Conference in 1932. Ab-initio, this Alliance cannot merit any legitimacy, the fact being fairly well known to it.
When the fate of Jammu and Kashmir State was decided in 1947 after its rightful Ruler Maharaja Hari Singh acceded to India , accepted in totality by Sheikh Abdullah , ratified by the National Conference in 1949 , how come inconsistency started creeping in as in 1952 he broached the idea of an independent State hobnobbing with Owen Dixon , the UN representative . Should the jurisdiction of even the Comptroller and Auditor General to the then state have been taken as an affront to virtually rise in revolt against New Delhi and then the same Sheikh Abdullah on July 13, 1953 at the “Mazar-er-Shouda” saying ” It is not necessary that our state should become an appendage of India or Pakistan “. Plebiscite Front was formed , the intervening period of 1953 to 1975 is fairly known which culminated into the same Sheikh Abdullah accepting Chief Minister-ship (not Prime Minister-ship)in 1975 of Jammu and Kashmir holding it till his demise in 1984. Plebiscite Front was wound up . 1987 elections paved the way for secessionist movement . Who was responsible for that , everybody knows.
When Special Status , Articles 370 and 35 A were there, why autonomy and self rule were demanded and why still earlier plebiscite was demanded ? Why so much inconsistency ? Jammu and Kashmir is no football to be exclusively played by Abdullah dynasty and now by Mufti dynasty as well . Neither Article 370 shall be restored nor any special status , at best statehood can be restored as promised by the Union Home Minister . Let Jammu and Kashmir witness peace, tranquillity, development and no spilling of any blood , the Gupkar Alliance need to offer its “services” to that end.
feedbackexcelsior@gmail.com
Vistara to operate more flights from Delhi, Mumbai to Goa to cater to rising demand
CANDOLIM (Goa), Oct 22: Vistara will operate more flights to Goa from Delhi and Mumbai from Sunday as there has been a “positive response and demand” on these sectors, said a senior airline official on Wednesday.
The airline plans to operate two more weekly flights on the Delhi-Goa route and one more weekly flight on the Mumbai-Goa route, the official said.
Goa sees a huge influx of tourists during every winter.
“Vistara is currently operating 9x weekly flights between Delhi and Goa, and 10x weekly flights between Mumbai and Goa,” Vinod Kannan, Chief Commercial Officer of Vistara, said.
“Considering the encouraging response on these sectors, we plan to increase it to 11x weekly flights between Delhi/Mumbai and Goa in the winter schedule starting 25 October 2020,” he added.
The coastal state sees a high number of foreign tourists, including a sizable number from Russia and Britain, during the winter season.
From August 28 onwards, Vistara started operating special flights on Delhi-London route using its newly-inducted Boeing 787-9 Dreamliner aircraft.
“The (Delhi-London) flights have also been re-timed, effective October 25, to enable convenient connections to and from several cities across India, including Goa,” Kannan said.
The airline would operate five flights a week on the Delhi-London route from November 21, instead of four a week being operated currently, and a daily service from December 1.
The increase in frequency to and from Goa as well as on the Delhi-London sector are resultants of the positive response and demand on these routes, Kannan noted.
“We do expect travel to further pick up, especially around the festive season in India, however, customers’ considerations will still largely depend on health and safety measures, and streamlining of quarantine requirements,” he said.
The aviation minister had also recently said that airline traffic and demand for domestic travel is expected to reach pre-COVID-19 levels by the end of 2020, Kannan added.
India had resumed its scheduled domestic passenger flights from May 25 after a gap of two months due to the pandemic. Currently, airlines are allowed to operate maximum 60 per cent of their pre-COVID domestic flights.
“According to our customer survey concluded in June, 65 per cent of the respondents expected to take their next Vistara flight before December. This gives us confidence as we continue to monitor passenger demand and scale up our operations in a calibrated manner,” Kannan said.
Scheduled international passenger flights have been suspended in India since March 23 due to the coronavirus pandemic. However, special international passenger flights have been operating between India and various other countries, including the UK, under air bubble arrangements.
Vistara’s London flights are currently being operated under the India-UK air bubble pact. In such a pact, airlines of both the countries can operate special passenger flights to each other’s territories under certain restrictions. (PTI)
For autonomous State GST rates
Bharat Jhunjhunwala
Interstate movement of goods was troublesome before the implementation of Goods and Services Tax (GST). Every state used to classify goods according to its understanding and collected Sales Tax at different rates. For example, kraft paper could be classified as “packing material” and taxed at 20 percent one state, while it could be classified as “paper” in another state and taxed at 25 percent. These variations led to a number of disputes at the borders and hampered interstate trade. The Union Government implemented a GST system which classified all goods in the same category and imposed the same rate of tax across the country. The businesspersons no longer had to calculate the different rates of Sales Tax applicable in different states while making a sale. The businessperson in Mumbai today does not have to calculate the different rates of GST on the same goods sold to Cuttack and Delhi.
However, the states were not willing to give up their autonomous power to levy Sales Tax as per their requirements. In order to overcome their resistance, the Union Government assured them that it will compensate them for any shortfall in GST during the next five years. This compensation was to be calculated assuming a 14 percent increase in GST per year. The present problem is that the economy has been slowing for the last four years since the implementation of GST thus the collections are less while the Union Government is committed to compensate the states at the rate of 14 percent increase. The Covid Pandemic has pushed the matter to the brink. The Union Government is unable to compensate the states as they were promised. A huge amount of Rs 2.35 lakh crore has become due to the states. The Union Government has made a scheme that it will borrow Rs 1.1 lakh crore and pass on the loan to the states to help them meet their expenses during the delayed payment of compensation. However, the states will have to bear the interest burden on this loan.
This GST system has taken away the autonomy of the states. Previously every state had the authority to change the rate of Sales Tax. For example, Himanchal could collect higher rates on room heaters and Tamil Nadu on air conditioners which are bought more in the two States respectively. In consequence the states are caught in a bind. They cannot increase the GST rates in case they want to raise money, for example, to make a highway or a Metro. The situation will become catastrophic for a number of States after the end of the five years when the Union Government’s assurance to compensate for loss of revenue will come to an end. Reportedly some states will see a sudden decline in their revenues by up to 40 percent. They will not be able to even pay the salaries of their police and revenue personnel. The entire law and order situation in these states can crumble.
We should consider giving autonomy to the States to fix the rates of GST. A number of large countries provide such an autonomy. Canada, for example, has three types of GST. Only 5 percent “Federal” GST is collected on goods sold in Alberta. Five percent “Federal” GST and 7 percent Provincial states Tax (PST) is collected in British Columbia. The two taxes are combined and a 13 percent Harmonized Sales Tax (HST) is collected in Ontario which includes a 5 percent share of the Federal Government. The movement of goods from one state to another remains seamless despite this multiplicity of GST rates. There are no border checks. The seller collects GST as applicable in the state of the buyer. For example, seller “A” in Alberta will collect only 5 percent “Federal” GST on goods sold to a buyer within the state. The same seller “A” in Alberta will collect 5 percent “Federal” GST and 7 percent PST, total 12 percent, on goods sold to a buyer “B” in British Columbia. Now, let us say, the buyer “B” in British Columbia sells those goods to a buyer “C” in Ontario. In this situation “B” will take setoff of 12 percent GST (5 percent “Federal” GST and 7 percent PST) and collect 13 percent HST from the buyer “C” in Ontario. All the taxes—GST, PST and HST—are collected by the Federal Government and then distributed to the States on the basis of the bills raised.
We can modify the present GST into such a system. A seller “X” in Maharashtra may collect 18 percent GST on goods sold to a buyer within the state if Maharashtra does not impose a PST. The same seller “X” in Maharashtra will collect 18 percent GST and, say, 2 percent PST, total 20 percent, on goods sold to a buyer “Y” in Andhra Pradesh if Andhra has a 2 percent PST. Now, let us say, the buyer “Y” in Andhra Pradesh sells those goods to a buyer “Z” in Odisha. In this situation “Y” will take setoff of 20 percent GST (18 percent GST and 2 percent PST) and collect 18 percent GST and 7 percent PST, total 25 percent from the buyer “Z” in Odisha if the PST in Odisha is 7 percent. Such a system will restore the autonomy of the states to impose addition PST as per their requirement. At the end of 5 years, Punjab can impose a, say, 5 percent PST and save itself from bankruptcy.
Canada has gone beyond GST and provided autonomy to the states to levy Provincial Income Tax. The Federal Government collects Federal Income Tax @15 percent on taxable income up to 49,000 Canadian Dollars. A taxpayer in Alberta pays an additional 10 percent Provincial Income Tax on taxable income of 131,000 Dollars, one in British Columbia pays an additional 5 percent Provincial Income Tax on taxable income of 42,000 Dollars and one in Ontario pays an additional 5 percent Provincial Income Tax on taxable income of 45,000 Dollars. Every state in Canada has autonomy to collect both GST and Income Tax as per its requirement. A similar system is in place in the United States of America. I know of a person who has changed her domicile from New Jersey to Florida to take advantage of lower rates of Provincial Income Tax in that State.
We must soon provide a similar autonomy to our States. This will eliminate the pressure on the Union Government to continue compensating the States for shortfall in GST beyond the five years committed earlier. It will restore the ability of the states to raise revenues to make water recharging structures, highways and metros. It will save the unity of the country that is being threatened due to the states being bound with lower revenues and higher expenses.
(The author is formerly Professor of Economics at IIM Bengaluru)
feedbackexcelsior@gmail.com