As a part of our My India - My Vote Campaign towards Indian General Elections 2014, we bring you the series of articles in these columns, this is the first part of our series: INN LIVE believes it is our responsibility to demand our rights and expectations from the leaders we choose to serve our country. When we vote, we vote with certain outlook, that the government will fulfill their promises at any cost. After all it’s my India and My votes, it must and it will count!
In today’s scenario, it is very important to have fair governance, freedom from corruption and archaic laws. An environment that boosts economic growth and encourages entrepreneurship.
We, at INN Live have thought of certain key areas which seek an immediate attention. We are providing our take and our expectation, based upon our surveys to the government and we are hoping that this election would bring in new hopes and new heights for our nation.
We are presenting our list while we are open to any suggestions from our readers, policy makers and experts.
RE-EXAMINING THE TAX LAWS: It’s high time we re-examine the tax laws. Let the burden be equally shouldered among the citizens of India. It’s strange that only less than 3% of the population shows any taxable income .So, all the saddles of tax payment are borne by this 3 % without any consideration for the rising inflation. There can be many solutions to the problem, like taxing more no. of people, irrespective of the industry so that the overall rate of tax can be reduced or one simple solution could be the reintroduction of the standard deductions.
Even the standard provisions, like HRA, LTA or other allowances, to the salaried people needs to be revised based upon the factors like cost of living of the particular city, so that it solves the purpose and also provides the intended relief.
INDIRECT TAXES MUST BE UNIFORM TO PROMOTE STREAMLINED MARKETPLACE. The wait for a streamlined pan India goods & Services tax have been stretched too long for various political compulsions. What matters the most is always kept for the last hour. The decision to replace the Value Added Tax ,(VAT) with the state specific sales tax was introduced on the right note to provide uniform tax rate , an input tax credit mechanism to prevent 'tax on tax', and relatively standard processes. Today, because of local revenue compulsions, states have increased VAT rates and blocked or reduced input tax credit (which allowed a credit for taxes paid on intra-state purchases), thus hampering pan-India trade. India needs to be a seamless, not a fragmented, marketplace.
VAT must be put back on track by bringing about uniformity in tax rates, rules and procedures in different states. In the long run, call it GST or by any other name (say, central VAT or consumption tax), but there needs to be an economically efficient indirect tax regime that promotes growth.
NEED FOR INDEPENDENT APPEALS DIVISION: We need an independent appeals division ,which is not linked to the tax department.Tax department shall solely be responsible for tax assessment, scrutiny and tax demands.
OPTIMUM UTILIZATION &TRANSPARENT ALLOCATION OF GOVT EXPENDITURE: The government must be accountable to the tax payer on how their money is being spent. There should be a clear and transparent process to track the utilization of the government expenditure. There is a need to set a target for every sector where there is a need for government expenditure and the taxpayer and every citizen of the nation should have an access to the progress data, this will definitely encourage optimum utilization of government expenditure while curbing the corruption scandal.
TRACING THE BLACK MONEY BACK: Since Independence (till 2008), India has lost nearly $213 billion (about Rs 14 lakh crore) in illicit capital flight, according to the report by Global Financial Integrity .Even if, by amnesty scheme, 20% of it can be brought back, that is close to Rs 3 lakh crore, the amount can be judiciously utilized for investment in our education, health care or infrastructure. It will relax our inflation issue a bit and our currency can also get appreciated.s
CURB UNEMPLOYEMNT, INCENTIVIZE PRIVATE SECTOR! India is a nation of youth where nearly half of its population is young. Government must ensure employment prospect of its skilled and educated youth. A cause that needs immediate attention and action. The same cannot be fulfilled by government sector alone we need to bring in more private players by providing them some lucrative incentive. Like Tax exemptions, grants for job creation, credits against tax payable, weighted deductions for the cost of new hires and their training costs .
ENDORSE FOREIGN DIRECT INVESTMENT: A decision by the Union Cabinet to allow FDI in a sector must be followed with an immediate effect, every industry may it be education, retail, defence, healthcare should be opened upto FDI.This would enhance the growth of our economy and also create better job opportunities for our youths.
ENCOURAGE NEW ENTREPRENEURS: It is shocking to note that ,India ranks 134th among 189 countries, on ease of doing business as reported by World Bank. On ease of starting a business, it ranks even lower: 166. The report speaks of 35 permissions/procedures required to construct a warehouse, which on an average amounts to 168 days. Which clearly indicates the cumbersome process to start one’s business. It’s high time we simplify our process and encourage entrepreneurship.
SUPPORT MICRO, SMALL & MEDIUM ENTERPRISES: After agriculture, MSMEs tops the list of sectors generating the largest employment (nearly six crore. In terms of valuation, MSMEs account for 45% of total manufacturing output, 40% of exports, and contribute around 8% to GDP. We can get an inspiration from the European Union, where three parameters define what constitutes a micro, small or medium-sized enterprise: employee strength, turnover, balance sheet value. While employee strength remains fixed , a company can opt for either the turnover or balance sheet criterion. The same process can be followed in our country for better clarity and growth of MSMEs.
PROMOTE FLEXIBLE LABOUR MARKET: "Studies have proved it over and gain that inflexibility in labour market discourage creation of new jobs. Employers must have an option to downsize their workforce during the slump period, this would encourage the hiring prospects during their boom phase. Though proper measures must be taken by the employer for a comprehensive social security programme, which shall include, unemployment benefits/insurance and assistance in retraining and finding alternative option of income generation.
NEED TO REVIEW THE RECENT LAND ACQUISITION ACT: The recent law pertaining to the land acquisition in India is creating hues and cries among the industrialist who are now struggling to acquire land for industrial purpose. There is of course a need for better compensation, but the price of acquisition should be affordable to the industry. There is a need to devise a middle ground for the betterment of both the parties involved.
NEED FOR LEGAL RESTRUCTURING: There are various legal reforms that need to be addressed, some of them are:
• Implement CIC decision to bringing parties under RTI: None of the six national parties have complied with the CIC's path-breaking decision in June 2013 to appoint information officers and appellate authorities under the RTI.
• The Representation of the People Act should be amended to make it mandatory for all recognized parties, national or state, to set up the necessary RTI machinery.
• Sec 377 should apply only to non-consensual gay sex: The retrograde Supreme Court judgment on homosexuality needs to be overturned
• Gradation in punishment for rape: There is a need to introduce gradation in punishment. While expanding the de?nition of rape to include all forms of penetration (and not just penile vaginal intercourse any longer).
• Introduce a law against torture: Despite signing the Convention against Torture in 1997, India is yet to enact a law which would enable it to ratify the treaty. The Bill introduced in 2010 needs to be enacted at the earliest.
• Turn adultery into a civil offense: The IPC provision drafted in the Victorian era treats adultery as a crime, which can be complained against only by the husband and never by the wife. Following the example of liberal societies, India should make adultery a civil offence — breach of trust — even as it remains a ground for divorce.
• The colonial provisions of sedition and blasphemy ,don't belong in the 21st century. In different ways, they hollow out the freedom of speech and expression.
• The sedition provision — section 124A IPC — needs to be amended to check the recurring misuse of sedition by state authorities against political malcontents. The amendment should incorporate the SC's liberal interpretation in 1962 that, no matter how much the accused spreads 'disaffection' against the government, sedition can't be invoked unless he incites people to violence.
• The blasphemy provision — 295A IPC — needs to be scrapped as the inbuilt safeguard has proved inadequate.
• Get rid of obsolete laws: After over two decades of economic reforms, our law is still not rid of obscure and obsolete provisions. The central or state laws continue to offer ample scope to 'authorities' to harass law-abiding citizens. We need to get rid of such legal traps.
We, at INN believe there are still lots of scope for amendments and there are still lot of hope with which we caste our vote.There must be few areas which we might have skipped, we want our readers to provide us your feedback and do let us know your take on our series.
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