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GST Bill: Time for Congress to question its means and ends

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By Gaurav Sharma

Photo credit: youtube.com
Photo credit: youtube.com

The current ruckus created in the Parliament over the introduction of the Goods and Service Tax Bill(GST), has resulted in a stalemate between the NDA government and opposition parties threatening a whitewash monsoon session this year.

Finance Minister Arun Jaitley blamed the impasse on the “obstinacy of two Congress leaders”, alluding to Congress President Sonia Gandhi and Vice-president Rahul Gandhi.

Jaitley alleged that the Congress’ demands for resignations of Sushma Swaraj, and two other ministers, was a pretext for stalling the GST bill. However, the Congress refused to backtrack from its stance and continued to shout its motto, “no resignation, no House”.

Meanwhile, JD(U) chief Sharad Yadav and other MP’s from the Samajwadi Party(SP) attacked Jaitley for his inability to push through the bill.

Why has the bill created such a mindless, bitter standoff so as to stall the functioning of Parliament, brazenly splurging precious taxpayer money in a sea of inactivity? Is it mere coincidence that the passage of the bill in the Upper House gratuitously timed itself with serious charges being leveled against top politicos?

This requires an understanding of the Goods & Services Tax.

GST is a tax initiative which aims to bring all indirect taxes under a single tax structure, whereby all goods and services are charged under a national sales tax. It is the backbone of the indirect tax reforms that the Indian government has been aiming to bring forth since 2010, when the then finance minister P Chidambaram proposed it in his budget speech.

GST is part of a constitutional amendment bill for which means it has to be passed by both the Houses of the Parliament.

Under the proposed harmonised taxation system, only the Central government would be able to levy an integrated GST on the interstate transfer of goods and services and imports. Rates of tax, supply principles, special state provisions and levy period for additional tax would be determined (recommended) by a GST Council.

How will it help the economy?

Although the provisions of the bill are not strictly conforming to an ideal GST regime, the tax would bring a sea change in the way business is conducted in the country and the way economy revolves.

It will iron out the kinks in the current indirect tax structure, broaden the tax base (thereby filling the government coffers), increase compliance and prevent the gory practice of double taxation.

Economic distortions which further make life difficult for businesses running at a pan-India level, will be wiped clean, providing much-needed ease-of-doing-business for corporates. Manufacturing activity would start rising and tax compliance would become simpler.

Finance Minister Arun Jaitley boisterously described the GST as the biggest tax reform in India and went to say that it would add a substantial 2 per cent to the growth rate of the country.

Issues pertaining GST

The GST has its fair share of  contentious issues. First of all, the provisions of the bill declare an additional tax of 1 per cent (for 2 years) on inter-state trade or commerce by the Centre, thereby precluding the visualized aim of taxing value addition and not trade.

Furthermore, the exclusion of alcohol and petroleum from the ambit of the GST Bill puts question marks on the resolve of the government to ushering forth a strong taxation regime.

Some states have voiced concerns over potential revenue losses in light of the change in tax infrastructure. Still, in the long run, one can expect prices to fall and delivery of goods and services to become more efficient, bringing much cheer to the inflation saddled shoulders of the consumer.

Indian products, both in domestic and international, can be expected to become more competitive due to the fall in price. A surge in exports would cut India’s current account deficit (CAD) significantly, which can have a cascading effect on the strength of the rupee.

It would not be too far-fetched to imagine a vast improvement in India’s standing in the global markets, if the GST is implemented swiftly, without any red-tapism.

Present Status

GST has not only caused a scuffle between politicians but has agitated the corporate groups. Most of the corporate honchos blame the Opposition for delaying the implementation of GST.

More than 61 per cent of the respondents of an ET poll felt that the delay would be a setback, a pushback to the economic recovery. Majority felt a complete economic recovery would be difficult to accomplish by April 2016, the deadline set for the passage of the bill.

If the opposition comprising of 68 Congress, 10 Left, 11 AIADMK MPs continue to battle tooth and nail against the bill, their credibility as pro-reform political parties will be questioned.

While the Rajya Sabha requires the sanction of at least two-thirds majority to pass the bill, the prospective opposition alliance would fail the bill by seven votes in the house of 245 members.

Considering the fact that barely 2 days remain for the end of the monsoon session, it is highly unlikely that the government would be able to introduce the bill. The opposition in its political zealousness has resorted to a desperate measure of log jamming the Parliament.

Protesting against a pro-market, pro-economy legislation, shows the degraded levels to which our politicians have stooped to, without giving a hoot to the slick democratic machinery of the country.

Our politicians swear by the Constitution, it is time they start abiding by it.

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List of UPA Schemes Renamed by Modi Government

The above comparison shows that BJP is not only trying to steal the credit of previously launched schemes by Congress party by just repackaging them as new schemes

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India, elections, vietnam, BJP
Modi's LPG scheme reduced household air pollution: Study, VOA

A lot of BJP supporters claim that government led by Narendra Modi has launched several schemes for the development of nation in the last four years. What they failed to acknowledge that Narendra Modi has done nothing else than repackaging and renaming the previous schemes started by Congress and took their credit to his name. Shocked, aren’t you? In the last four years, Modi government has failed to develop any original ideas. So in order to appear like the government is working, they have renamed various successfully running schemes started by Congress party to fool people of the nation into believing that BJP has launched numerous schemes in the country. If you find this fact hard to believe, here is the list of s Modi government schemes that are nothing but altered name previously running schemes in the nation:

Pradhan Mantri Jan Dhan Yojana

Originally Basic Savings Bank Deposit Account (BSDBA)

The (BSBDA) scheme was launched in August 2012 according to RBI which provided facility of no minimum balance required to maintain the bank account and avail all the banking services. The number of withdrawals were however limited to 4 per month. The Pradhan Mantri Jan Dhan Yojana (PMJDY) is nothing else than a wrap up on BSDAB scheme adding Rs 1 lakh of accident insurance, overdraft facility up to Rs 5,000 and a life insurance of Rs 30,000 to previous BSDAB accounts.

Beti Bachao, Beti Padhao Yojana (BBBPY)

Originally National Girl Child Day programmes

BJP
The government has initiated a lot of programmes to bring about a change in the attitude of people and stop these kinds of social evils. Wikimedia Commons

According to a report of Centre for Development and Human Rights presented in 2016, the girl child education programme listed under the BBBPY scheme is nothing but the repackaging of older Sarva Shiksha Abhiyan started by Congress.

The act of similar repackaging of scheme can be found in BBBPY’s programme to improve child sex ratio and reduce the dropout rates of school girls. These programmes were already available under Congress party’s Dhanalakshmi and Sabla schemes.

Swachh Bharat Abhiyan

Originally Nirmal Bharat Abhiyan

One of the major Modi government schemes, Swachh Bharat Abhiyan launched in September 2014 is nothing but restructured result of Nirmal Bharat Abhiyan scheme which was started by Congress in April 2012.

Nirmal Bharat Abhiyan was also a renamed scheme by Congress party which was originally introduced as Central Rural Sanitation Programme by Congress in 1986.

Pradhan Mantri Awaas Yojana

Originally Indira Awaas Yojana

Pradhan Mantri Awaas Yojana, BJP
‘Pradhan Mantri Awas Yojana ‘ is an initiative by Government of India in which affordable housing will be provided to the urban poor.

According to a parliamentary standing committee report, it is found that the most anticipated Pradhan Mantri Awaas Yojna by Narendra Modi nothing by rechristened format of Indira Awaas Yojana. The funny fact about the renaming of this scheme is that several web pages of Pradhan Mantri Awaas Yojana still open as Indira Awaas Yojana documents.

Deen Dayal Upadhyay Gram Jyoti Yojana

Originally Rajiv Grameen Vidyutikaran Yojana

According to an information release by government on 23rd July 2015, the Rajiv Grameen Vidyutikaran Yojana stated by Congress is merged under the Deen Dayal Upadhyay Gram Jyoti Yojana launched by BJP with no significant changes.

Soil Health Card scheme

Originally National Project on Management of Soil Health and Fertility

According to the Outcome Budget 2015-16 of the agriculture and cooperation department, a soil health card was included in the scheme of National Project on Management of Soil Health and Fertility. The similar soil cards were also issued by Congress under the National Mission for Sustainable Agriculture.

 

Paramparagat Krishi Vikas Yojana, BJP
The aim of this scheme is to form 10,000 clusters over the next three years and bring about five lakh acres of agricultural area under organic farming to develop agricultural activity in the country

 

Paramparagat Krishi Vikas Yojana

Originally Rashtriya Krishi Vikas Yojana and other programmes

The lack of creativity and insight in Modi government schemes can be seen in its Paramparagat Krishi Vikas Yojana which is nothing but the fusion of some existing components which are amalgamated together as a cluster based programme. This fact was reported in the Outcome Budget 2015-16 of the agriculture and cooperation department.

Pradhan Mantri Jan Aushadhi Yojana

Originally Jan Aushadhi scheme

The Jan Aushadhi scheme was developed by Congress to supply unbranded medicines at reduced prices. This scheme was executed on 23 April 2008 and the first store under this scheme was established on 25 November 2008. According to an statement issued by Loksabh on 144th March 2017, the Jan Aushadhi Scheme is renamed as Pradhan Mantri Bhartiya Janaushadhi Pariyojana.

Make in iIndia, BJP
Make in India, a type of Swadeshi movement covering 25 sectors of the economy,

Make In India

Originally National Manufacturing Policy

The funny part about BJP copying this scheme from Congress National Manufacturing policy is that they forget the remove the information of previous policy in the new website of Make In India scheme. The broken download link redirects to the 2011 older policy document of year 2011.

Also Read: Prime Minister Narendra Modi Appeals MPs To Utilize Their Winter Season Well

The above comparison shows that BJP is not only trying to steal the credit of previously launched schemes by Congress party by just repackaging them as new schemes, but the BJP lacks credibility and insight required to develop new schemes necessary for the development of the nations. Some other Modi government schemes that were actually the brain child of Narendra Modi and BJP part resulted in drastic disaster in nation. GST and demonetisation are two biggest examples of such failed Modi government policies.