The implementation of the Goods and Services Tax limits the rights of states to levy taxes.
The news item (Lok Satta – September 17) reads: People will come to understand that all the bad loans of the banks will be recovered from now on by reading and reading the recommendations of this ‘bad bank’! But this will not happen at all, the capital of this bad bank will be given by the government banks, and there will never be any dividend on it. It will be a ‘dead investment’. Earlier, the Reserve Bank had launched DICGC (Deposit Insurance and Credit Guarantee Corporation) in the country. If the small loans given by the banks went bankrupt or a bank went bankrupt, the money of the depositors would be paid by the insurance company, which is not enough – even a meager amount! The strike was called off and the DICGC had no capital left to pay the insurance claims, so the debt insurance business was shut down. This will be the situation of this bad bank. The government and commercial banks will have to pour equal amounts of capital into this bank, which will never get their money back. Loans are not taken care of properly, loans are used for improper reasons, borrowers use loan money for other purposes and such liars are still not punished, imprisoned and no political party wants to legislate for it. So what far-reaching good changes will be made in the financial sector by setting up a bad bank? – Sudhir Keshav Bhave, Jogeshwari East (Mumbai)
This concept needs a chance!
Congratulations to the Federal Government for mentioning the Bad Bank concept in the budget of 2021-22 and for its actual implementation! The National Asset Reconstruction Company Limited (NARCL) to be set up for this purpose will try to recover more by buying the bad loans of the banks at a lower price. It will be more convenient for banks to sell their bad debts as they will be consolidated. It is hoped that the valuation of the assets of the debt-ridden companies will actually take place as it involves professional experts. But there are no global examples of this bad bank succeeding. Also, there is no guarantee that bad debts will be sold. Therefore, the challenge of developing a sustainable independent business model will be mainly faced by this bank. Yet the concept of a bad bank is welcome and this bank needs to be given a chance. – Rahul Jaysingh Musle, Kolhapur
The need to review goods and services tax
The implementation of the Goods and Services Tax has limited the rights of states to levy taxes. The power to levy taxes is vested entirely in the hands of the Goods and Services Tax Council, ultimately the Center. This has increased the economic dependence of the states on the Center. This issue is emerging as an obstacle in the development of the cooperative system. Today, the collection of taxes is first credited to the Center and then distributed among the states. States have been complaining that they are not getting their dues on time. Fuel must be included in the goods and services tax. But they will also have to release water on this only source of revenue for the states. This will make the states economically dependent and completely dependent on the center. If the co-operative system of states is to survive, the states must be given autonomy to become economically self-sufficient. The role of the center should be that of a parent. The right of the states to levy taxes should remain unaffected. This requires a review of the goods and services tax system. In a fragmented country like India, which is diverse in language, culture and customs, it is not practical to run everything on the principle of ‘one country, one (tax / language /…)’. – Hemant Sadanand Patil, Goregaon West (Mumbai)
To reduce electricity arrears of agricultural pumps
Among the letters in the headline ‘Kill and Earn’ (September 16), ‘… Then who will save the farmers?’ This reaction (Lokmanas – September 17) seems justified given the circumstances. Within the stipulated time (for example, within three months), MSEDCL should prioritize repairs and other issues related to the power pumps of the farmers and earn their trust. Also 10% if 100% of the bill is paid in the same period; Incentive refunds should be given in the form of five per cent if half the amount is paid within three months and two per cent if 25 per cent is paid. Doing so will reduce the arrears. In the future, however, do not decide to give away anything for free. – श. The. Gomkale, Nagpur
Same ‘effect’ of inefficient teachers!
‘The Tragedy of School Education’ is a p. Read Chidambaram’s article (September 16). In it and also in Ervi, the ‘impact’ report was mentioned only in rural areas. In fact, reading and mathematics in primary education in both rural and urban areas need to be compared! As stated in the article, the educational gap between the rich and the poor has widened, but it is true. It is far from possible to bring about the expected change in a system where incentives and punishments do not exist. An intelligent, talented, experimental teacher is valued by the administration in this educational system or is paid the same as an incompetent teacher. Qualified teachers are not encouraged. There is no punishment for incompetents. So the system does not change. The Karona crisis. Will the government encourage quality teachers and punish inefficient ones? – Keshav Patil Vasarikar, Nanded
If the elderly are going to be persecuted
An old couple was released from the harassment of their son and daughter-in-law by the High Court (Lok Satta-September 17). This decision of the High Court is important and others should learn from it. These types of things can be curtailed only if your property is transferred to a good social organization after death by making a will about your property without belonging to such children. – Rajan Butala, Dombivali