Build your professional network on facebook via our app Go to app
 
 
 
Functional Area : ANY
Activity:  12 comments  221 views  last activity : 07 07 2010 03:36:23 +0000
 Refer 348
Share
 
 
 

Unbalance ------ its an opportunity ????? … may be

Petrol prices raised …. An overview said … rise is Rs 4 approximately … which helps in reducing the burden on government in terms of eliminating subsidy. In other way increase in revenue in terms of taxes. 

Is it valid ???? Is Govt. trying to take duo advantage of price hike? 

Subsidy … in my opinion …. Is the tool to motivate corruption, burden on salaried people, price hike on daily needs indirectly.

In other words subsidy given means facilitate people to get the things in low price so that individual budget won’t get affected and the difference amount would be paid by Govt.

Now come to a mathematical model of subsidy and taxes …. And I am sure you will realize that now we are made FOOL by such high class economists, policy makers, Central Govt. and State Govt. And of -course politicians … SORRY I forgot to count such intellectual property of my NATION…. SORRY NETAJI.

 

Say price of petrol Govt is buying                 – Rs ‘Z’

Govt. was paying in terms of subsidy              - Rs ‘Y’

People are paying say                                   - Rs ‘X’

Taxes on the same                                       - T %

 Means               X = (Z-Y) + (Z-Y)* T                           

 

Conclusion is that

  1. We were enjoying as Govt. says, but practically not… why? Because we paid so many taxes in terms of house, income, insurance, service, VAT, education, CESS etc. Overall revenue is same… I mean to say Govt is enjoying.
  2. Govt. is over burdened since last 63 years due to this word subsidy and never started initiatives for people because of this. Agreed SUBSIDY its an abusive word to an independent person who never wants to steps with support or help. And this amount is quite substantial… as per above methodology it is Y*T.
  3. Hypothesis says SUBSIDY is inversely proportional to taxes.

 So 

If subsidy eliminated taxes should be eliminated on subsidized amount.. but NO … BIG NO 

Now price is X = Z + Z*T 

We are paying taxes on full price …. Means Govt has taken duo advantage 

  1. Subsidy amount eliminated which will create an huge amount of revenue.. i.e. Y
  2. Taxes on subsidized amount i.e. Y*

WHY???? NO ANSWER

 

To reduce this UNBALANCE … I feel the following course of action to be initiated by people like us … how … better you tell me to make it more effective …

 

01.Govt should increase the interest rate on all means of savings and investments such as saving bank accounts, recurring, fixed deposits, home loan principle, insurance amount etc.

02.Govt should go for CONSOLIDATED tax structure… charge this tax once and free people for all buying, investments, etc. and take care of people on medical and accidental ground.

03.Income tax slabs need to revise again and make it more easy or low for high income group… which will helps to open the black money.

04.If all do not happen than All citizen should follow the GANDHIJI’s SATYAGRAHA and NON CO-OPERATION. Stock your daily needs for three months and sit back to your chair at home for one month at least …. No work in Govt or Private … do not send your kids to schools ….. do not go to work … do not buy anything … do not sale anything … STOP working completely … Do not go for agitation outside … do not harm to public and private property …. Just take rest … Please keep in mind … Do not follow NETAJI and their promises …

For your information the same petrol in Pakistan Rs 26, Afganistan Rs 34, Nepal Rs 30, and in Bangladesh Rs 28, because Govt has imposed only 6% taxes on actual price without subsidy... all figures in INR and tentative.

Actual minimum sales price for petrol to Govt. or Petro companies  is Rs 16.70, Central Govt taxes are Rs 18 and state Govt taxes are Rs 17 and rest part for transportation.

No state Govt came forward till today to reduce their tax part for the help of people, whether it is from Congress or BJP or any other. They are hungry like a bagger... there is no treatment for their apetite .... What they will do with this revenue we knows and well experienced that most of the part will be eaten by corruption ... no progress we could observe ....

For progress we have to depend on IMF or world bank or other countries ....AGAIN .... GOD this should not happen .. its a NIGHTMARE...

Is it really required ???? I m confused … please help me .. I don’t want to be a psychopath …. My friends from media and legal side can help me … sure.

 Top Comment : ujjval jain   | 07 06 2010 09:40:27 +0000
Dear Nitinji,,,the thing is not only about hiking the fuel prices nor regarding the bandhs etc. What I as a layman feel that where does our economy is heading to? I don't know which data to quote,,,but there are major chunk of the people who are living less than Rs 20/- per day,,,the number of poor also have increased,,,more over we have a system where rich are getting richer & poop getting poorer,,,& in the end we have one of the highest inflation for the basic food needs... I am not an economist,,,but sure,,,one day resentment will turn into unrest,,,& then,,,something must be done but increasing the prices for essential commodities...
 
12 comments on "Unbalance ------ its an opportunity ????? … may be"
  Commented by  Abraham Paul, Owner, FCOMNET- Future Groups    | 08 03 2010 04:16:47 +0000
More than defective fiscal policies, the ever growing 
rampant corruption due to unsatiable greed is the evil
that engulf all of us. 

What is happeing in the CWg project is symbolic of all
these in nutshell.
  Commented by  NATTERAJA R. ARIKRISHNAN, Area Sales Manager, HPL INDIA LTD, CHENNAI    | 07 08 2010 18:40:11 +0000
Thanks for referring Mr.Malladi Madhukumar.
  Commented by  Nagpal Singh, Sales and Business Development, Babel Group of companies    | 07 08 2010 07:32:20 +0000
elaborateded, yet good one. Tanmay's point is nice as well 
  Commented by  NATTERAJA R. ARIKRISHNAN, Area Sales Manager, HPL INDIA LTD, CHENNAI    | 07 07 2010 19:22:31 +0000
Really it makes every one to think, Nitin Ji you have rightly gauged..In fact it is a exhaurbitant price increase for petrol etc. How other countries are able to sell at the rate indicated, we people are being cheated by the people who are in the helm of affair... it is a shame for us.

Thanks for the referral Mr.Nitin Ji.
  Commented by  Rathin Deb, Resident Manager, Tower Infotech Ltd.    | 07 07 2010 05:59:44 +0000
I think your observations are practical but there should be people in Govt. who should understand but everybody is only interested in their position and promotions so who will bell the Cat or let them understand the ground reality.
  Commented by  Nitin M Aras, Head/VP/GM-Tech. Support, Wintech Taparia Limited    | 07 07 2010 04:57:38 +0000
Thanks to all of you for your valuable comments
  Commented by  malladi madhukumar, AGM -MKTG, Andhra Cements Ltd    | 07 06 2010 14:22:48 +0000
The treasury is bag with so many holes.
Poor man is taxed for burning a match stick whether he takes food or not. 
Govt. authorises drinkers to drink even if the drinker does not give a rupee in his house.
People are not in a position to purchase vegetables (even middle class) in view of spiralling pricesof vegetables. A proper regulation on prices, balancing of prices is poor man"s dream. Even though we have all resources it is basically the attitude and concern for the aam admi is lacking. Something must be done to bring in proper discipline in solving the problems of aam aadmi.
  Commented by  Tanmay Gaur, Freelance Software Developer    | 07 06 2010 11:34:09 +0000
Rating : +1 
Nitin, I actually don't agree with you. I wrote about this earlier also. Its only about figures. Earlier, Govt. used to take from us in terms of taxes and labor and little private venture and gave us in terms of subsidy and we felt poor. Labor, we never gave to the Govt. in return because returns were not proportional to labor. Socialist set up. With economy opening up, now, they let more to be earned in terms of private companies, ventures and MNCs. Even public sector get more income. Thus more value to our labor. We get more money in our hand as per our labor. We don't need subsidy now. We need more opportunities to earn which are being provided. We should therefore pay our taxes. Thats one. We cannot go to bandh because its our money for our labor that we lose and not the govt. Thats two. Third point here is. Inflation is because of energy shortage. Fuel and Energy are required when you want new set ups, new venture, new employment opportunities, economic opportunities and earn money. The problem here is consider about poor people. Poor people are the one who stand last to gain from economic ladder but tell me who are we talking about. Rickshaw pullers, vegetable hawkers, farmers, govt. forth class employees, who? They will get more from you, from us, we the tax payers, the client/customers/buyers of them. So economic growth means India a rich nation. We cannot compare ourselves with Pakistan, Afganistan or Nepal. So this is opportunity in every way.
  Commented by  hitesh kumar yadav, Quality control Engineer, HM Pipes Pvt. Ltd    | 07 06 2010 11:33:57 +0000
Nitin ji such an good referral, but like ujjval said this is not only about petrol , gas, or other thing that affects only and only middle class segment of our population that is major part of our population, why our netas or system go for a policy that improve the living standard of peoples called BPL or lyk that but the corruption is so much that real poor peoples are not in these type of list ,.....really a big step is required ...
  Commented by  ravi vyas, sales and marketing, IFB Industries Ltd    | 07 06 2010 11:20:01 +0000
Rating : +1 
A really big eye opener..and thanks I would now feel less ashamed for living on subsidy. And very correctly said- none of the Netaji from any of the political parties have ever thought for the Aam Admi. this hunger is really unending...And then these _ _ _ _ _ _ _ wants to sent army (one matginalized group) against the so call Maoists ( another extremely marginalized group). Nitinji thanks for this lovely article and as Ujjval has mentioned this will lead to unrest one day..GOD save us..
Thanks for referral Nitin. I hope you & I and everyone could get the answer and to be precise - "solutions which could be implemented"
  Commented by  ujjval jain, 'Retailer' , adidas    | 07 06 2010 09:40:27 +0000
Rating : +1 
Dear Nitinji,,,the thing is not only about hiking the fuel prices nor regarding the bandhs etc.
What I as a layman feel that where does our economy is heading to?
I don't know which data to quote,,,but there are major chunk of the people who are living less than Rs 20/- per day,,,the number of poor also have increased,,,more over we have a system where rich are getting richer & poop getting poorer,,,& in the end we have one of the highest inflation for the basic food needs...
I am not an economist,,,but sure,,,one day resentment will turn into  unrest,,,& then,,,something must be done but increasing the prices for essential commodities...
Add your comment on "Unbalance ------ its an opportunity ????? … may be"

Rate:
Submit
Post Your Resume Now !
Viewers also viewed
When it comes to importing, an international trade entrepreneur seeks to derive significant...
 
1 referals 2 votes, 380 views
Income tax : First they said anyone who has annual income upto 5 lacs will not have to file IT...
 
1910 referals 17 arguments, 483 views
more...  
Recent Knowledge (94)
The following is a reproduction of from an article I wrote in 2004. 1.  Harnessing the vast...
 
735 referals 18 comments, 325 views
My friend Rizwan Khan mailed me this interesting draft made by a Pakis journalist.   Written by...
 
427 referals 42 comments, 2675 views
INSPIRATIONAL STORY...BY AN INDIAN CEO...   of a US firm! From studying under the streetlights...
 
78 referals 11 comments, 630 views
more...  
More From Author
Its fair, but in Kerala which is only educated state it is not required... strongly feel that its a part of education to take care of mother who cannot go for pregnancy all the time... means if people are educated than no need of imposing rules on...
virtual means always virtual.... you cannot expect emotions... even friends u r making through FB or from other social networking site may not be worthwhile ... so how do you expect from such inventions... let it be the part of Rajnikant movie
just got this humor A retired woman calls 911 on her cellphone to report that her car has been broken into. She is hysterical as she explains her situation to the dispatcher: "They've stolen the stereo, the steering wheel, the brake pedal and...
more...