Wednesday, March 30, 2016

Clever Kejriwal Supports Demand Of Jewellers

A large number of gold traders and jewellers are on  strike for almost a month  in protest against the proposed one per cent excise duty on non-silver jewellery. Most jewellery shops and establishments in the country are shut since March 2 after finance minister Arun Jaitley announced one per cent excise duty on non-silver jewellery.

Arvind Kejriwal Chief Minister of Delhi has come in support of jewellers and asked Prime Minister Mr. Narendra Modi to take back 1% excise duty imposed by central government during presentation of budget for the current year. Arvind Kejriwal writes to CMs over rollback of excise hike on jewellery. Delhi Chief Minister Arvind Kejriwal also met President Pranab Mukherjee and asked him to intervene in the matter. He says that as soon as excise duty is imposed , inspector raj will come back, jewellers will be tortured by officials, jewellers will have to maintain proper stock of work done by them and so on. Mr. kejriwal says  that the levy of 1 per cent excise duty on non-silver jewellery will lead to "inspector raj and corruption".

It means Kejriwal is not bothered of illegal money absorbed by these jewellers who sell  their 90% of product in black money. He is not aware that illegal money earned by corrupt officials and Corrupt politicians is also concealed in gold products. 

 If 1% excise duty is imposed, jewellers will have to pay tax for every product they produce and they sell to consumers. Further govrnment has proposed that every buyer of gold should provide PAN if the purchase is more than Rs.2.00 lac. These two important steps taken by central government will help in stopping business men hiding black money in form of gold and also help in exposure of corruption.

These steps in long run will help in boosting economy up when black money will slowly be convertd in white and then invested in real manufacturing work. But Mr. Kejriwal is least concerned about health of economy, he is more concerned about health of his politics, future of his party AAP and that of votes he will get from jewellers and workers associated with this industry if he extend support to their illegal strike.

I do not understnad how workers in jewellary industry will get affected by imposition of excise duty on gold. After all, it will be the consumers of gold who will have to maintain proper account of gold purchased, who will have to show entire transactions in their balance sheet and it is they who will have to pay little bit more than usual market rate while buying gold products. It is traders in gold who will have to maintain proper accounts of their purchases and sales.

It is to be kept in mind that govrnment will earn some revenue which will also ultimatly be spent in social welfare scheme only. It will be a positive step for common men and negative step for rich people who may afford buying gold to save black money. Middle class and poor class families will not face any trouble in buying gold valued less than Rs.2.00 lacs.

People of India who are unbiased towards any political party or any politician  and who understand principles of economy and that of fiscal management  will laugh at logic given by Mr. Kejriwal while supporting withdrawal of 1% excise duty.

Kejriwal's  argument that it will increase the work of jewellers and increase interference of inspectors in activites of jewellers to ensure compliance of excise duty is not at all justified. If this argument is accepted, then government will have to stop charging tax on income  also , because it also leads to frequent raids by income tax authorities and it also gives opportunity to Income tax inspectors to interfere in day to day activities of business men.It also creates scope for corruption.

Practice of income tax also forces every business men and service men to mantain accounts of their income and investmnt to arrive at proper amount of income tax payable to government of India. This is extra burden on business men and service men who work hard to earn money. If they conceal their income and indulge in evasion of tax to create black money , they are subject to scutiny by income tax officials and punishable under IT rules .

Similar is the postion of every type of taxation that a state government or central government introduces for increasing their economic resources and for increasing their capacity to spend on social welfare schemes. If arguments of Mr. Arvind Kejriwal is accepted , then all taxes should be withdrawn and people of India should be made completely free to do what they like to do to earn for their family. Government will have to stop all works related to infrastructure , social welfare and all those works which an individual do not do for the society.

Drug inspectors who carry out inspection before granting a license for a medical shop also create problem for a trader in medicine. Inspectors of Pollution Control Board also appear burden to business men whose industry cause pollution in air and nearby social habitats. Food inspectors are also problem creators for business men who indulge in adultration in food to earn higher profit. Exicse inspectors are burden for all manufacturing industries who fall in the ambit of excise duty. Service Tax inspectors are burden on hotels, cinema halls and all service providers who come in the range of service tax rules. Sales tax and value added tax also lead to inspector Raj and creates scope of corruption.

If arguments of clever Arvind  Kejriwal is accepted , then all these inspectors will have to lose their job. Not only this, rule of law will be taken over by anarchy where free for all will be the law of the land.

 I do not know where Mr. Kejriwal will lead to us if he is handed over charge of this country. I am afraid that such politicians may sacrifice all principles of economics and go to any extent to serve their political interest if they get power to rule.

Kejriwal is blaming Mr. Narendra Modi in particular  and central government in general for all his fault , for all his failures in Delhi, for all those accidental or normal  incidents taking place in the country which suits politics of Kejriwal. 

Some section of Media and some Modi hater journalists give full coverage to all leaders who can abuse Modi on right or wrong issues.  Kejriwal may get support from such baised media men , but common men will never support irrrational and illogical arguments of Mr. Kejriwal like politicians. This is why , Mr. Kejriwal is hated outside Delhi though he is appreciated by some section of Delhites for his good work for some section of the society.

Even Chandan Taskar Verappan who was  a great looter was worshipped in his village due to his mass charity work by money he accumulated by looting work . And hence getting votes in some constituency or winning some assembly seats or Parliamentary seats in the country is not enough to  certify good character and good qualities of a person or a party.

In short run , Kejriwal may earn some popular votes in country like India where media and caste plays a great role in changing the innocent and illitrate minds of voters . 

But in long run , politics of Kejriwal will prove fatal if he does not change his ways and does not stop his unwarranted interference in the affairs of other state governments and that of central government. Modi haters like Kejriwal will do great harm to country if they do not support government in good policies and in growth oriented works of Central government. People of India had great expectation from Kejriwal when he was leading a movement against corruption but they are now totally disappointed.

Kejriwal thinks it wise to suggest hundreds of advices to management of private schools in Delhi but does not  have idea how to improve teaching standard of government schools. He wants to earn popularity by giving discount on electricity and water bill, but he does not have idea how to ensure power supply and water availability to every common men. He wants reservation for some caste or the other but do not have idea how to create new job opportunities in Delhi.

Kejriwal criticises Modi when Mallya flies out of India and accuses Modi of facilitating Mallya going out of India but he does not have any say for those leaders of Congress Partyy who forced bankers to lend money to sinking Kingfisher airlines of Mr. Mallya. 

It is undeniably true that it is UPA governmnt which wilfully ignored and neglected when volume of stressed assets in banks were rising each quarter during their regime.  And during Modi rule, defaulters are now thinking of repayment due to clear messahe given by Modi, Jaitley and Rajan. 

Kejriwal  suggests bankers to give education loans to each student but he does not suggest how to recover money from defaulting students. If all political leaders start focusing on recovery of bad loans as they suggest for sanction of loan as charity, I think entire culture will change and there will be minimum cases of default in banks.

Kejriwal is perhaps not aware how much of bank loan is in stressed category in banks of Delhi State . And if he is aware of real health of PSU banks in Delhi, he should help banks in recovering money from defaulting persons and companies instead of blaming Modi for all such faults. He should understand role of state government in making banks stronger.

In my view Mr. Kejriwal is pound follish and penny wise in politics as well as in economics and governance. 

Kejriwal thinks that he may win the post of Prime Minister from Mr. Modi just by ridiculing each act of  Mr. Modi and just by putting blame on Modi for fault of each state government. He may think that by doing dirty plitics on dalit issue or on Kanhaiya issue he may win the heart of media men and all India dalit and muslim voters. He may think that by supporting all evil acts of Muslim and by ridiculing all acts of Hindus , he can win the battle of Parliamentary election . But in my view he is totally wondering in dreamland and he will be taught a good lesson in forthcoming election once again as he faced total humiliation in last Parliamentary election.

1 comment:

Danendra Jain said...

A banker's life is fully dependent on Politics of the country and bankers are suffering now only due to evil acts of politicians which were committed during last few decades only. We bankers remained silent spectator only and allowed all types of loot carried out by corrupt politicians in nexus with some of corrupt bankers. I am Modi Bhakt or not ,it is not significant, what is right and what is wrong for bankers, it is more important.

In my article ,some point may not liked and such reader may oppose a particular point and give substance to prove his point. Readers will give more value to all those good points if it suit them .

Modi or Kejriwal or Rahul ,none is ideally and perfectly good. You have to have your own idea about a person. But banking is fully integral part of Politics. Bank employees are doing injustice to their career if they turn blind eyes towards corrupt politicians.

I too support Kejriwal but not as blindly as some Modi haters do. Politicians, political writers , political spokesman and political workers may be blind to their leaders, we bankers are not blind followers of anyone. But we must see who and which party may prove to be better for our country in the long. If country becomes weak, our bank and our career in bank will be doomed and face dark days .

If you find fault in Modi or in anyone, put your valued opinion to make country brighter, your bank stronger and turn your career the best

Under UPA government ,Bankers ( which includes 17 top banks ) could not even prove for four years from 2010 to 2014 that Kingfisher Mallya is a wilfull defaulter. Due to continuous follow up by current government and clear message to all defaulters including Mr. Mallya that every pie will be recovered from rich defaulters , that Mr. mallya came forward to clear the dues and agreed to pay Rs.6000 crore by September 2016. Obviosly fate of banks depend on attitude of politicians. If the govrnment is sincere in its job and its responsibility , none of borrowr can digest legitimate due of bankers .Please wait for some days , bankers will realise how bad debts are recovered.

Not only Mallya, all rich and high value defaulters are now disturbed mentally and physically. It will increase recovery amount for each bank and it will give a boost to profit of each bank. When profit increases, paying capacity of each bank increases. When bank improves, career of bank staff also improves.