TRANSACTION TAX REQUIRES LOT'S OF RETHINKING

Let me clear in the beginning that we are not one, who oppose any new idea. But before advocating anything specially one associated with economics, needs lot of innovative thinking. On paper any scheme appears to be good, but in practice it comes out different.Those advocating the schemes are talking, only superficially. Specially in our

country where every one takes Law by words, not by spirit. Transaction Tax requires lot of thinking, we feel. It is some what like PURCHASE TAX proposed by Dr Ram Manohar Lohia. The idea is well explained in the different books of Dr. Lohia. Once you go through it you will find that the idea is not just vague. If it is implemented every one have to share burden of tax as per his purchasing capacity. Rich one will pay more tax in comparison with the poor one who has very little for purchasing. But it has nothing to do with the price rise. For the purpose Dr. Lohia suggests another alternative ,DAM BANDHO' fix the rates. No one advocated for it, not even SAMAJVADIS. Therefore it remained only in books. Anyway we are not discussing it.

Presently government has only asked to link Aadhar card with the  bank accounts. And we are the people finding it hard and tiresome for the consumers. Presently our country is not ready for it. Bank's can not take burden of all accounts. As per Reserve Bank of India, out of 6,30000 villages only 4,00,000 villages are having connectivity with Bank's. As per World Bank Findex Survey, only 35 adults in India have Bank Accounts. How we are going to cover our entire population by Bank's. We should think of creating infrastructure first. Even developed countries with strong Bank infrastructure could not dare to try any such formula. We are aware about the literacy rate of our country. We have to teach people how to work with the banks. It is also a herculean task. 

Secondly it is not eradicating cash transactions completely. Notes below 100 rs. denomination will be in transactions. Looking to present market people will need to carry heavy amount of notes with them. It is going to create new problems. We have to take estimation of cash transactions before proceeding in this direction. And how we are going to cover these transactions under the umbrella of tax.

We are aware that in olden times we were having BARTER system. In which no cash transactions were required to be made. Only commodities exchanged. Later on PRONOTE and HUNDI system came in. In these systems one person writes on paper that he has to pay certain amount to the holder of that paper. One who have that paper in his possession can exchange it with anything having that much value. Those having good reputation need not to have that much holding of money in their possession. Only under the belief that the person writing the Hundi, Pronote is reputed one. That paper moves in the market doing number of transactions, no one doubts it. That is how paper currency came in existence. If such system developed again for avoiding TAX, then what.

Our opinion is different, it is not the tax which effects price of a commodity in the market but several other factors contributes a lot in deciding the price of a commodity in the market. Specially greed of earning multiples higher profit. We are observing in the market that selling price of a commodity is 100,200 or 1000 times higher to its production cost. Several time govt. gives relaxation in tax, with an intention of passing i to consumers. But consumers never get the benefit of this relaxation. We feel that price rise is a mentality, not effect of any tax. This is not going to effect that mentality.

One thing is important to mention, it is not the system that works but intentions of the society. If intentions are good anything will work, otherwise nothing. The system is not foolproof as supporters are claiming a long way to go, a lot to be discussed

BANK'S ARE GOING TO INVITE PROBLEM IF THEY GO FOR CHARGING 'ATM' FEE,( AKHIL BHARTIYA GRAHAK PANCHAYAT)

                                

Akhil Bhartiya Grahak Panchayat strongly condemn the initiative of Bank's to start charging on ATM withdrawals. Since RBI had given free hand to bank's for deciding their charges. Consumers are feeling cheated for the exorbitant  service charges imposed by the Bank's. These service charges are swelling every now and then. Beside exorbitant difference in the interest rate the Bank's are paying and charging. The bank's are making the consumers to cough out a good money only in the name of service. Reserve Bank not only intervene in the matter,but take regulation of  the service charges in his hand. An intervention in regulation of service charges is necessary to save consumers from exploitation. 

Akhil Bhartiya Grahak Panchayat desist Bank's to stop such practice, forget charging on ATM for withdrawals. Otherwise we will be forced to start nation wide agitation against the Bank's. We promise Bank's are going to invite problem, if they go for charging ATM fee.

After the ATM incident of Bangalore, bank's are directed of providing security to the consumers. And in the name of making provision of Guard at ATM, Bank's are crying for increase in their cost. In the name of this increased cost they are asking for ATM fee, which is no where in the world. Bank's think there is no one to raise voice for the consumers therefore they are free to charge any amount, to make any statement, to give any reason. But Grahak Panchayat will not allow it to happen. In fact it is responsibility of the bank to provide safety when consumer enters in their ATM. Because Consumer only avails banking services inside ATM box, which are promised by the bank. Therefore it is not different from Bank premises. Argument for cost increase in provision of Guard is a foolish argument. Which we are unable to digest. Bank's are not erecting ATM's in any fancy mood. But they are opting it to save their cost. In fact consumer is obliging bank's by using ATM. This cooperation of the consumers have given opportunities to the bank's, for making deep savings in their manpower cost. The Bank's should part with the consumer with this amount saved and should reduce other service charges.

Bank's should not take it lightly. They should come forward and withdraw their statements and apologize consumers. If they are having any slight ray of hope, that they will be able to introduce withdrawal charges from ATM. They should prepare themselves to face the music of the consumers ire in the leadership of Akhil Bhartiya Grahak Panchayat, in every town of the country. 

While agitating we may request the consumers to stop using ATM. Instead personally go to the Bank branch for each and every transaction. We will also see that the bank branch is forced to provide service to each and every consumer with in a fair/prescribed time span. It is headache of Bank Branch and bank officers to manage the show within a fair prescribed time period. It may be 2000 or 5000 consumers in the bank branch for withdrawal of money at a time. We are serious and we want Bank's also to take it seriously.