
Plaques marking Independence Day silver jubilee left amid squalor in Tiruchy village
The names of more than 15 individuals from Andhanallur union who were part of the freedom struggle are inscribed on the other side. While the Tricolour flag was once hoisted by the side of the stones and the spot commanded a gathering during events, the commemorative stuctures now lie amid garbage owing to a lack of maintenance, complain the public.
The situation only worsened during the Tiruchy-Karur national highway expansion, they say. "Every year, on August 15, the nation organises special events to commemorate the sacrifices made for independence," said Ayilai Siva Suriyan, district secretary of the Tamil Nadu Vivasayigal Sangam. "However, by neglecting the memorials and the honours given in the past, we are unknowingly disrespecting both our independence and the freedom fighters who sacrificed their lives for it, bringing deep sorrow," he said.
K Thangaraj, a retired Air Force officer from Thirupparaithurai, who has been attempting to reinstate the memorial structures to their past glory, said, "I request the district administration for immediate steps to renovate the memorials and place them in a manner that allows the public to view and pay respects to our nation's independence and the sacrifices of our freedom fighters. This gesture will help the younger generation understand the value of freedom." TNIE's attempts to contact the Andhanallur block development officer (BDO) for comment went in vain.
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New Indian Express
an hour ago
- New Indian Express
Want 'Good and Simple Tax'? Treat GST as consumption tax
A Good and Simple Tax that's "simpler, more transparent" and which will "help us in curbing black money and corruption and reward honesty". This was Prime Minister Narendra Modi's promise in his speech at the time of Goods and Services Tax (GST) implementation in July 2017. In his latest Independence Day speech from the Red Fort, the Prime Minister had promised us a new set of reforms to help us "build an Atmanirbhar Bharat". The aim is to unleash "significant reforms in GST, focused on three pillars, of structural reforms, rate rationalisation, and ease of living", the government has claimed. Let us look at the current state of affairs and see if the latest promise will deliver the desired results and also assess if there could be some unintended consequences. Focus on lowering cost of living and building ease of living During the last few years, our households have been struggling to raise real earnings and improve the quality of their earnings. A vast majority of the formal workforce is stuck in contractual employment. In such a situation, it is regressive to see gross GST collections increasing from 6.23% of GDP in FY 2018-19 to 6.83% in FY 2023-24. It is, therefore, important that rate rationalisation should lower the aggregate level of GST cost that households bear. However, it is not a sin to have multiple levels of GST rates at our stage of development, as richer households have far more ability to bear the cost of development when compared to the lower income households. We don't have a publicly available estimate of Input Tax Credit (ITC) availed by businesses and that of unutilised credit. We also don't know if all the ITC claims are indeed passed on to consumers. Consequently, we don't know the impact of GST on cost of living. It, therefore, is important that the new reforms not only deliver lower published rates but also inform us transparently about the impact of GST on our cost of living. Input Tax Credit: Cost of complexity to cost of corruption During his speech, at the launch of GST, the Prime Minister had called it a "Good and Simple Tax". He had referred to Albert Einstein's statement on complexity associated with income tax and had promised us that we will get one nation, one tax. We did get one nation one tax, but it is so complex that we need specialists to ensure compliance. A recent article referred to GST as Good, not Simple Tax. Another article listed 13 hidden costs of GST regime. For instance, GST on popcorn left a bitter aftertaste, as a TNIE editorial pointed out. A look at input tax credit (ITC) problems make us realise that ITC has not only added compliance costs for honest businesses, but it has also provided unlimited opportunities for corruption, as has been seen in multiple fake ITC claims reports. In its pure form, ITC is expected to help reduce the cascading effect of taxation. But in its degenerate form, it can and has provided perverse incentives for the dishonest. We also know of situations where large companies don't pay their suppliers the GST component of the invoice until they have filed their GST returns—adding to cash flow woes of small suppliers. Eliminating ITC and making GST a simple consumption tax We now have complete data for about seven years, and it is not difficult to assess the level of ITC claims that the industry has made by each sector. The government can publish the ITC data and its analysis and show us the level of net taxes that have been collected by sector/industry. The Parliament and the country can then debate the level of net taxes that we need by sector/industry and determine what is required net collection of taxes for meeting the investment requirement of an "aspiring nation". We can lower the GST rate to the level of net collection and make it a simple consumption tax, in its truest sense, not just a slogan for an election rally. Honest businesses will collect and pay the tax and not waste their energy in making input tax claims. The enforcement machinery will be able to focus its energy on identifying dishonest businesses and leaving the rest of the country to focus on productive work. Positive economic impact from elimination of Input Tax Credit Eliminating ITC can have additional positive economic impact. For example, the vast majority of workforce in India is employed through contractors, and the elimination of ITC on labour contracts will encourage firms to start taking them on their rolls. Businesses will also learn to deal with truly organised labour—an essential characteristic of a progressive society where labour is seen as a valued partner and not an economic slave. In addition, the businesses will learn to compete on total cost, including the taxes, if any, they are paying as part of their value-chain choices. Determining the most appropriate rate As mentioned earlier, it is not a sin to have multiple rates. Indeed, it is not difficult to assess the amount of resources we need for investment in our future. Let us assume that we need 6.5% of GDP in the form of consumption tax from households. Given that household consumption is 60% of GDP, the effective required rate is just 10.8%. If we add the government consumption to fixed capital formation to the tax base, the household burden will get lower. We can then determine the rate that richer households need to bear for their higher value-adding consumption and rate that upper- and middle-income families need to bear on their everyday consumption. Of course, an additional rate on sin or demerit goods too is no sin. The government's effort to get rates right did keep us smiling for a few days, through the popcorn saga. But if the government believes that certain kinds of popcorn products are sin products, it must classify them as sin and levy the sin tax. Products and services (polluting vehicles and equipment, tobacco, gambling, water- and energy guzzling or wasting equipment, etc.) that have adverse impact on human health and well-being or waste scarce resources are sin products, and, therefore, deserve more than even 28% rate. Writing for the Sunitha Natti has provided good food for thought in her article on bringing fairness in determining rates. Revenue sharing arrangement with states Once we agree that GST is a consumption tax, the consuming state deserves to get 100% of revenue collected on consumption within that state. The union government must then discuss its expenditure plan with the states and negotiate its share of aggregate consumption tax. That will constitute true cooperative federalism. In an ideal world, the union government must just collect one cess on higher GST slabs and raise the required resources without any disputes with the states, which will be the most appropriate step towards bringing transparency in government. If the union government is truly committed to bringing transparency and lowering the cost of living and improving the ease of living and doing business, it must first treat GST as consumption tax and get businesses to simply collect and pay. ITC creates the need for building a complex compliance system and a complex compliance system not only increases the cost of compliance, but also breeds corruption. Once we treat GST as a consumption tax, the consuming states deserve to retain their share of collection. The Centre can and must collect a separate consumption tax or a cess on top of higher-tax category goods and services.


Indian Express
2 hours ago
- Indian Express
States raise revenue loss concerns: GoM backs Centre's plan for GST rate rationalisation
The Group of Ministers on Rate Rationalisation gave its in-principle support Thursday to the Centre's proposal to overhaul the Goods and Services Tax (GST) design, even as member states raised concerns about potential revenue loss on account of the rate rationalisation. Six days ago, Prime Minister Narendra Modi, in his Independence Day address, announced the next big phase of reforms under the GST regime by Diwali, a gift for the common man, small entrepreneurs and MSMEs, in terms of reduced tax burden. The Centre has suggested replacing multiple slabs – 5 per cent, 12 per cent, 18 per cent and 28 per cent – with a broad two-slab structure – 5 per cent and 18 per cent – in addition to a 40 per cent special rate for sin and demerit goods. States said they do not oppose the 'pro-people' proposal, but it may result in revenue losses that will ultimately leave them with less resources to spend on common people in their regions. While Bihar's Deputy Chief Minister and GoM convenor Samrat Choudhary spelt out the panel's support for the GST overhaul proposal, he said observations made by states will be referred to the GST Council. Detailed discussions on items will be taken up in the Council, he said. 'We have deliberated upon the Centre's proposal to remove the two GST slabs, we have given our support and recommendations. Now, the GST Council will decide. All states gave their views, there were some observations by some states. Those will be referred to the GST Council,' Choudhary said. The differing views and observations of states on revenue loss and concerns over profiteering by manufacturers and companies will be part of the note that the GoM will send to the Council along with the Centre's proposal. Some states were also of the view that the work done by the GoM over the last few years will now essentially be wasted as they would be simply handing over the Centre's proposal to the GST Council. 'We have neither approved nor rejected it. Centre cannot give its proposal directly to the Council, so we will be just handing over the Centre's proposal to the Council,' a top state government official told The Indian Express. States are learnt to have sent their suggestions for the GoM's note on a mechanism to compensate states that will address their revenue loss concerns. States are anticipating annual revenue loss of Rs 6,000-10,000 crore, the official said. West Bengal's Finance Minister Chandrima Bhattacharya echoed a similar view and said they are 'okay with the pro-people proposal' but it is not an agreement. The Centre's proposal has not outlined the figure for revenue loss on account of the GST rate rationalisation and the proposal should not move ahead without detailing a mechanism for compensating states for revenue loss. 'It's not an agreement in that way. If it's there, it is okay. If it is pro-people, then it's okay. But it has to be discussed in the Council's meeting also. There is no benefit in discussing it item-by-item in the GoM meeting. It will be discussed item-by-item in the (GST) Council meeting. While presenting a report to the GST Council, they will give a note of what we have said,' she said. Bhattacharya said no state had any issue in accepting the pro-people GST overhaul proposal. 'All states are pro-people. There is no doubt about it. It's nothing to talk about in politics. They are pro-people, let us take it for granted. But when the states lose their revenue, that also ultimately goes back to common people. That has to be looked into. That is what we have said,' she said. 'Because to give relief to common people should not mean that there isn't much left to spend on them after that, we have to think about that. That's why we have said that while you give the presentation, you must quantify it (revenue loss),' she said. She also said that ministers from BJP-ruled states have concurred with the suggestions. 'But we have said we are there, if it benefits people, we are okay. On the one hand it reaches people and on the other hand see what is the loss we (states) are facing. Ultimately if a state suffers any loss, that ultimately boils down to the suffering of the common man,' she said. Uttar Pradesh's Finance Minister Suresh Kumar Khanna said the Centre's proposal was welcomed by all member states saying it is in the interest of the common man. 'States were asking that they should be compensated for revenue loss. The revenue loss will be calculated. Ultra luxury goods and sin goods will attract 40 per cent,' he said. Revenue loss concerns of states stem from the plan to prune the list of items in the 12 per cent slab and shift them to 5 per cent. There is also a concern that most items the existing 28 per cent slab. The Centre plans to introduce a special rate of 40 per cent, which will apply only to 5-7 sin, demerit and luxury items. States revenue loss concerns stem from the plan to prune the list of items in the 12 per cent slab and shift them to 5 per cent. There is also a concern that most items in the existing 28 per cent slab will shift to 18 per cent slab except sin and demerit goods. The Centre plans to introduce a special rate of 40 per cent, which will apply only to 5-7 sin, demerit and luxury items. Some states have suggested amending the GST laws to allow for an additional levy going beyond the current cap of 40 per cent (20 per cent Central GST plus 20 per cent State GST). Some of the items right now attract GST of 60-70 per cent, Bhattacharya said, adding that the law should be amended to ensure that the current tax incidence, especially on sin goods, remains at the current level.


Hindustan Times
2 hours ago
- Hindustan Times
MP man dials CM helpline for ‘getting just one laddoo' at I-Day event. Then this happened
In a country where grievances often range from potholes to power cuts, a villager in Madhya Pradesh has raised the bar by lodging a complaint for getting just one laddoo instead of the customary two on the occasion of Independence Day. MP man lodges complaint over missing laddoo at Independence Day event(AI-generated) The quirky complaint was registered by Madhya Pradesh's Kamlesh Kushwaha on chief minister's helpline number, reported news agency PTI. The report citing officials stated that Kamlesh Kushwaha, a resident of Naudha village in Bhind district, dialed the Chief Minister's Helpline after receiving what he considered an incomplete sweet deal during the nationwide Independence Day celebrations on 15th August. The complaint was filed against the village sarpanch and secretary, officials said on Thursday. Man has filed over 100 complaints, says official From roads and drains to laddoos, Kushwaha's complaint record suggests no issue is too small to be escalated. Panchayat secretary Ravindra Shrivastava said, 'Kushwaha is the in habit of doing such things. He has so far filed 107 complaints with the CM Helpline on various issues.' However, Kushwaha's grievance did not fall on deaf ears. Small as the matter was, authorities swung into immediate action. Taking the matter seriously enough, the panchayat rushed to rectify the 'shortfall' by purchasing one kilogram of laddoos for distribution. But in an unexpected twist, the complainant declined the offer.