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.

IT IS EASY TO CUT DOWN ELECTRICITY RATE BY 50%

Yes, it is easy to cut electricity rate by 50%. This conclusion came in a discussion with the experts on the eve of Consumer Day i.e. 24th Dec at Institution of Engineers, Nagpur. Various experts were present in the discussion, including those consumer affair, electric generation, distribution, representing consumer side at Electricity Regulatory Board. 

It's a political-technical nexus drafted intelligently to exploit consumers. The political leadership busy in eating out capital of electricity, realized that they will not be able to suck consumers blood for a long time. Because whenever they were increasing electricity rate they were cursed by the people. Which was also not good for their political career. Therefore in the name of bringing more transparency to the consumers, they drafted legislation for the constitution of Electricity Regulatory Commission. An independent body to look in to the affairs of consumers and electricity generators, distributors. It is shown that the govt. have to do nothing, it is in between consumer and supplier. In case of any grievance, one who feel problem can approach ERC. It is completely ignored that in India how consumer can fight a legal battle with a commercial institution. How an illiterate consumer will be able to quote various sections of the ERC law and scrutiny of the account containing thousands of pages, prepared by those expert in this field. In short illiterate consumer is entrusted with the responsibility of defending himself in the court of law, by challenging generation cost, distribution expenses, transit loss and various other technical, economical and legal aspects. One can make it out what kind of transparency is awarded to the consumers by en-thrusting ERC regulation. In a way sheep (consumer) is thrown before lion with a warning of defending himself. Not only ERC but all other regulatory bodies created in the name of safe guarding consumer interests are biggest source of consumer exploitation. Actually these institutions are created for adjusting the beurocrates after retirement and have nothing to do with the consumers interest.

In the discussion it came on the surface that though these electric companies have outstanding of several thousand crores on government and other big consumers. In case this revenue is made available to the electric company by clearing outstanding. Electric company will come out of red easily, without increasing rate of the electricity. But to hatch consumer is an easy option. Therefore instead of going for this tough option of making recovery of their money from the government and other prosperous companies in the shelter of politicians. ERC always permits tariff increase one, two three and even four time in a year. How one can go against their masters, it is tough. Consumer is easily available.

Generation is the other area, where plants are working at lower capacity. Using costly imported coal as a fuel to serve interests of certain blocks. Purchasing of the electricity at higher rate. Even if the power is available at cheaper rate rules are drafted so that they have to go for costlier options. In a way all monopolistic practices are in practice to sell electricity to the consumers at exorbitant rates.

Distribution is another area where electricity bills are drafted in such a way that one has to apply his all skills for understanding calculations made in the bill. Even then it is not easy for him to understand it. Consumers are again exploited in the name of transition loss. Though standard norms are there but suppliers need not to care for it as his interests are well protected by the ERC. 

It is not possible to go for any reduction in electricity cost, unless these ERC's are scraped. Level field is given to all private operators for distributing electricity generated by them. One thing to remember consumer elects his representatives for his protection. It is duty of the elected representative to safeguard his interests from all odds. Not to ask him to protect his interests by going through complicated legal procedures.

One thing emerged in the discussion clearly that it is easy to bring down cost of the electricity, if interruption of ERC's is eliminated, electricity companies are forced to perform, the payment from the government and political patronized companies are regularized. 

GRAHAK PANCHAYAT WARNS GOVT. FOR ANY INCREASE IN DIESEL PRICE

Akhil Bhartiya Grahak Panchayat strongly condemns the round of news spread by the government through media for Rs.5/- increase in Diesel price. It has become strategy of the government to spread news like this through various agencies working under them.At a time when they are not easy with the political environment in the country.  It is quite surprising that at a time when crude prices are at its lowest in the world market. Government is thinking of increasing price of these commodities.We are observing since long that when ever congress government start feeling any political uneasiness. It spreads news like this to divert attention of the consumers from the main problems. Instead of discussing laxity and failure of the government majority consumers, change course of their discussion, because of such explosions.

Now -a-days two main issues are in the air. Growth of IM modules in the country. And If Sardar Patel would have become first Prime Minister of the country. In the present environment government do not want any of the two to be the subject of discussion. That is why government is trying to explode the bomb of price rise. Discussion on strengthening of the IM module brings out impression in the public that government has soft stand on IM, because of appeasement policy. We have experience of the history of the bomb explosions by the terrorists and reaction of the various political parties in the past. Recent explosions of during Patna rally of Modi, has sparked a debate in the country. That how an outfit of terrorist can become so strong, in an important state. That it can carry out serial blasts in such a huge quantity, in the capital city of a state, during a rally supposed to be organised under tight security cover. Not only that forces continue to get live bombs, even after 3rd day of the rally. 

The very same state refuse to take custody of main terrorist of the same outfit few days back. So much explosives were transported to the capital city and the rally ground. People of the state can easily feel how safe they are. If this discussion goes on with the public, not only state government but the center government will definetly come under fire. The ire is increasing in the public. 

The second one is about Sardar Patel. Most of the countrymen knew that how the Sardar had handled the situation of various states like Hyderabad, Bhopal, Rampur and Junagarh, when they were not ready for the merger with India.The only state Kashmir not handled by the Sardar is still posing a problem for the country. Both the issues can become a problem for the party ruling at the center. To divert attention of the consumers from these issues, the government is bringing up the steep increase in Diesel price, just ahead of a festival. 

Consumers have not recovered from the increase in REPO rate by the RBI, two days ago. Which is going to make a dig in to the pocket of the consumers. Now it has come up with the idea of increasing the price of Diesel. Diesel is the life line of the nation any increase in its price, effects price of each and every commodity badly. Diesel mostly used by the farmers and transporters. At this stage consumer are not 

ready for any increase in the price of these commodities  AKHIL BHARTIYA GRAHAK PANCHAYAT warns government to stay away from any such increase. And appeal to each and every consumer of the country to give a be fitting lesson to the political parties in the government and supporting the government. 

COUNTRY IS FREE TO PREDICT IF SARDAR HAD BECOME FIRST PM OF THE COUNTRY

Congress or any other organisation in the country can not shy away from the questions like Narendra Modi tossed in his speech, when sharing Dias with the Prime Minister Manmohan Singh. That had Sardar become first Prime Minister of India. Picture and fate of the country would have been different. The reply of the Prime Minister that Sardar was from the same congress, which he represents can not be treated as be fitted reply. I would not go in to the details of history and the divisions congress had faced during the preceding years after 1947. But I am of the opinion that no one can be stopped from opening up of such debates. Every citizen of the country has right of making assessment and taking stock of such situations in the country, after laps of a period. Specially in the cases like Sardar Patel, who was completely ignored from his so called disciples for a long period. He was only remembered and become so much important when Modi prime ministerial candidate of BJP started using his name.

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Historians often ask counter factual questions to figure out how history could have evolved differently . While making such assessment people take account of different qualities of the persons and turn out of the situations. Personalities, knowledge, acceptability and level of sacrifice they are ready to make for the country, may also be taken in to account. Different opinion may come out. One may like someone, while other the other one. But in democracy like ours it is quite fair to go through such debates. Peoples learn for future, out of it and realize the mistakes and positive contributions of a person. Capability of such person in  Industrial, home, foreign, education and economic policies can definitely show a way to the country. And in process if any one feels some one better over the other, it may be his choice. If Congress is not if favor of such debates. They can move to a side but can not stop the country from going for it.

I wonder and feel pity to the friends of Congress. Who probably not gone through the book written by historian Ramchandra Guha named “Patriots and Partisans”. Other wise they would have come out on leaps and bounds. In the book Ramchandra Guha asks and answers one such question in an essay titled “A Short History of Congress Chamchagiri”. In this essay Guha briefly discuss what would have happened if Lal Bahadur Shastri, the second prime minister of India, had lived little longer. Shastri died on January 11, 1966, after serving as the prime minister for a little over 19 months.

The political future of India would have evolved very differently had Shastri lived longer, feels Guha. As he writes “Had Shastri lived, Indira Gandhi may or may not have migrated to London. But even had she stayed in India, it is highly unlikely that she would have become prime minister. And it is certain that her son would have never have occupied or aspired to that office….. Sanjay Gandhi and Rajiv Gandhi would almost certainly still be alive, and in private life. The former would be a (failed) entrepreneur, the later recently retired airline pilot with a passion for photography. Finally had Shastri lived longer, Sonia Gandhi would still be a devoted and loving housewife, and Rahul Gandhi perhaps a middle-level manager in a private sector company.”

Our’s is a democratic country. And we should put forward our ideas. At the same time we should respect the ideas put by the other person. We may agree or disagree to that, but it is a process go on moving in a democratic country.

  

EDUCATION IS OUT OF BOUND FOR MIDDLE CLASS IN INDIA

We were able to achieve higher GDP growth in service sector during the economic liberalization period from 1991 to 2007 at 7.81%, in comparison to 6.33% pre liberalization period only because affordable education facilities available for the youths belonging to middle class in the country. When information technology industry emerged. Our educated youth force was ready to take the challenge from the world. The increase in GDP in service sector was the contribution of this youth force, as a result of the growing software market. Our educated youth force has taken up the challenge and contributed in the positive growth of GDP in service sector. It was only possible because we were having large chunk of qualified programmers readily available for the world market. Availability of ample human resource is the positive sign for growth. India is having worlds largest youth power and this power can be easily converted in to an important asset. But to convert this youth force in to an asset for the development of the country, we need proper education facilities to train this force in a proper direction. With the rich experience of the past, when our youth force had picked up the challenge of proving its worthiness to the world software market. Unfortunately we have given up those lines in the field of education.

Earnings are necessary for economic growth. Earnings comes through salary/wage, profit earned in business, interest earned on investment and rent realized for a property. All four gradients are closely linked with the growth of industrial, agricultural and service sector. If we want to go for higher GDP growth. We should have target of growing in all these sectors with the help of quality inputs. It is proved time and again that the most important input required for the growth is human resource. We need properly trained and qualified personnel for the Industry, to give quality out put with cost effectiveness. So that we can compete in the world market in this era of globalization. We need qualified agriculturist to work in our fields. They will help in increasing GDP in this sector. Which is required to feed our population. This sector can not afford to be ignored. We are aware of the principle of Thomos Malthas,"growth in production in agriculture is in simple propagation, where as population growth is in geometrical propagation". Therefore we need effective human resource input in this sector, to keep ourselves self sufficient. Story of service sector every one knows. Therefore we should built a strong education system, which can develop quality human resource in all the sectors for the development. And finance should not become any hurdle in the development of this class. As India is the youngest country in the world, our educated class of youths can easily face the challenges of running the systems not only in India but in the world. We all know, it is not possible to prepare force of educated youths overnight. It takes years, right from the primary education to highly skilled professional courses. Any country wishing to develop can not afford to ignore these hard core realities. And if any, is certainly day dreaming and fooling it's people.

Unfortunately this important social aspect of development is completely ignored in India. In recent years education right from the primary level to the professional level is highly commercialized. The cost of education right from primary level is increased many folds. It is going out from the reach of the poor & middle class society. Which constitute 85% population of the country.Education institutions are completely turned in to highly commercialized business institutions. Fee structure of these educational institutions is far from the reach of the common man. We are going for a war without ammunition. Government's (Center & State) are completely neglecting these important aspects and playing role of mute spectators. Though some of them are trying to show that they are the most caring and distributing laptops, bicycles and other materials to the students for the simple reason of gaining popularity to win the election. But no one is taking care of the condition of school buildings, quality of teachers, presence of teachers, quality of education these schools are giving to the students. This important sector required for the economic growth is neglected.

Actually political class in the country is looking at this important sector as an opportunity to earn money. That is why they wish that the government should not improve education system in the country. And they continue to be the absolute owner of this heavily commercialized sector. Not only that they have introduced the systems of giving admission to the candidates, who can bring in large amount of money for them. This is hampering the quality of professionals in the country at one hand, where as driving the large share of the population out. That is why education institutions run by the government, are cursed to remain in poor state. And the influential political class is busy in developing this new area of business and commercializing it. Political class in the country is not leaving any stone unturned for exploiting benefits to be given to this social cause from the government treasury. That too in the name of social upliftment, at the cost of the taxpayers, by grabbing land at heavy concessional price, various subsidies. No business can be so lucrative as education is, because here you need to invest very little to churn heavy profits. This has completely changed the direction of education system, and turned it in to heavy commercial activity. This is quite unfortunate that any voice against the present system, never reaches to the deaf ears of the government. If any, they are ready to compare this cost with the western developed world. Easily forgetting that poverty line in those country is not Rs. 26/- & Rs. 32/- and that those country do not need Food Bill for feeding 65% population. The way government is subsidizing food in the country, it need to subsidize education. Because Nation & Society will be the ultimate gainer

SOME PICTURES OF KARYAKARI PARISHAD AT VARANASI OF AKHIL BHARTIYA GRAHAK PANCHAYAT