Google Analytics

Monday, 14 September 2015

Deloitte Study is an alarm to stabilize the weak tax regime in the country

In a recent study conducted by Deloitte, the international consulting firm found that in terms of predictability of tax laws, India's performance is very disappointing in the Asia-Pacific region. Among 800 tax executives in 20 countries 75 percent people were of the opinion that both China and India have poor tax governance.  India frequently change its tax positions in comparison to other countries in the region. Every jurisdiction has some tax challenges, but India is more intensely affected by these negative reviews.

Among majority of respondents, the perception was clear that the complexity and predictability of tax laws in these two big powers - China and India play a  significant role in determining their investment decisions. Many tax executives in China and India thought that the consistency is the most important issue in making business decisions.

Most people have the same opinion that both India and China tax regimes had become more complex. They pointed out that, these tax jurisdictions have become more  complicated than four years back in 2010 at the time of previous surveys. A cumulative 31 percent of these executives feel that,  the consistency of tax regimes across the region had changed in a significant way and it is not a positive change at all, it is going to be more and more become less consistent day by day. Despite poor tax jurisdiction, the study revealed that India in terms of consistency of tax regime had better results than the counterpart China and Indonesia in the last four years.

India is also ahead of China in tax auditing and punishment. People shared their thoughts that tax administrative procedures in countries like Singapore, Japan and Hong Kong is far better than India. The most disturbing outcome of the report highlighted that the effectiveness of the administrative procedures of India to resolve the tax issues is very low and disappointing.

The irony of our system is that who are behind the formation of tax laws are not well versed with the tax system, market and the implication of the proposed or amended law. A weak bureaucratic machinery is also responsible behind delayed procedures, audits and control measures. The majority of people want to evade the tax, despite the possession of valuable assets. People are not in the habit of disclosing their actual annual earnings and whatever part they are liable to pay they had made circumvent ways to deceive the system. All in all a successive tax regime is only possible in an environment of mutual cooperation and transparent policies. 

Tuesday, 11 August 2015

Job Creation Is As Important As Economic Growth

The economy is struggling to grow due to unemployment, which must be regarded as the national concern. While there are many socioeconomic issues, unemployment must be our top priority.  The government should focus on generating new employment opportunities, which would help to reduce poverty and inequality and improve the living standard of the masses, both in the rural and urban India. The environment has led to a great deal of discussion about government policies to create jobs. Unemployment can be a miserable experience and during recessions more people suffer it. Jobs provide people with income to fulfill their daily necessities.  

Job creation has slowed down as a result of governments providing greater support to capital intensive industries rather than labor intensive industries. Lower interest rates have borne down on manufacturing equipment and this has increased unemployment. The government can stimulate job creation when it invests in projects that improve or create new services. A change in monetary policies, tax incentives and changes in regulations affects the labour market in the long run. Jobs can be created simply by innovations and executing the novel ideas in the manufacturing and service sector.

The most difficult, but the most effective way of employment generation is to create new industries. It is possible to emulate other developing countries like China and S. Korea. As India is a liberalized economy and we support free market environment where investment options are more transparent and accessible to everyone.  Nothing should be more important than creating jobs to curtail poverty and accelerate economic growth. Unemployment does hamper the country’s economic growth, whereas job creation requires a stable macroeconomic framework coupled with structural policies that encourage innovation, skills and business development.

Creating jobs is crucial for development. Most developing countries struggle with high unemployment or underemployment. Creating new jobs, improving incomes and working conditions are hugely important. Innovations and technologies contribute to economic growth and employment, but also for overcoming other key problems of development. There are around 200 million unemployed people around the world, while a further 900 million earn too little to live from their income. Secure jobs with social benefits and fair pay offer a way out of poverty, which explains why employment is a key pillar of development.

Tuesday, 4 August 2015

Nurture the young minds with healthy thoughts not with sick pornography

Banning of pornography material could be the most ideal step taken by the government. The government has been tracking all internet service providers for them to act upon the matter, to stop and to ban pornographic content. This act of government has already choked down more than 800 anti-social websites. There are more than 40 million porn websites that are working from outside the boundaries of India. All the government can do is planning and monitoring the act.

The younger generation of today who will be guiding the world tomorrow is facing various plights. Pornography has entered through all means of communication in this commercialized world. Pornography through internet has become a worldwide problem because this could be obtained by everyone with the knowledge of using internet facilities without any differences of age.

Child pornography has become a new way of earning billions of money. Exposing children in erotic poses or engaging in sexual activities is pornography and this should come to an end for the modesty of our culture and society. Of the total number of pornography websites, one-fifth is child erotica websites and the largest groups of porn viewers are between the age of 12 to 17. This content includes sexual pleasure from observing other sexual activities which leads to unacceptable lifestyle and criminal activities. Cyber-crime has become an issue in almost all the countries. Persons in the young age, including both gender groups continuously induced through porn viewing become slaves to it and they are spoiling themselves.

Closing or blocking porn websites to protect our generation is not the only way out. People engaged in producing and selling porn materials by violating the rules and regulations should be brought to court and shall be charged with severe punishment. Steps should be taken to protect children from unwholesome content which is deviating them from the right path. 

The steps taken by the government to ban pornographic content and websites are very much in favor of young and innocent minds. We should try to inculcate good moral values and principles in the growing age of our children. If we couldn't protect them, then the coming generation falls prey to drug addiction, robbery and disrespect for the women. The nation demands a generation free from mental and physical sickness and psychologically healthy people no doubt will be the drivers of India's growth in the near future.

Thursday, 30 July 2015

Renewable Energy for Sustainable Growth

The consumption of electricity in India is much more than its production and its need has been increasing even more rapidly due to the rising population and industrial growth. India’s energy sector is struggling to meet the massive electricity demand. 

Unreliable supply and energy shortage is impeding India’s economic development. Even a power grid failure of lesser magnitude causes millions of people to stay without electricity for hours. Sometimes these power breaks last for days or even weeks, which lead to the complete shutdown of production in many companies, and other essential infrastructures like hospitals, banks, etc. Every small as well as large power blackouts can have devastating effects on companies which are not prepared for this. There is the need to develop sustainable energy solutions to eliminate wide-ranging power failures in the future that will ultimately help in economic development.  

Indian government should focus on the proper development of renewable energy like solar, wind, biomass and hydro energy to generate electricity. It is the best investment for both long-term economic growth and making a pollution-free environment. Moreover, a constructive energy policy could provide employment to millions of people and in the decentralization of energy distribution, which eventually would help in reducing the load on the grid. This will be a more cost-effective solution to provide affordable energy for everyone. 

India should take maximum advantage of solar energy- the prime source of free and unlimited energy. According to a report, with more than 300 days of sunshine, India has the total capacity of producing electricity from the sun is about 5,000 TWh of solar insolation every year. Even if a tenth part of this energy was utilized, it could mark the end of the India’s present power transmission and distribution issues. In addition, India can ramp up its attempts to develop and implement huge commercial wind and solar farms to meet the nation’s energy requirements and economic development goals.

The present power production capacity of India is about 200,000 MW and it would increase in future if right energy policies are formulated. There is a dire need to develop and execute favourable government policies to improve the exponential growth of renewable energy. Giving renewable energy a boost is not just a choice, but a necessity. 

Currently, India is heavily dependent on fossil fuels like coal, oil, and natural gas to produce electricity, which are not only expensive, but also pollute the environment. Due to our vast population, India purchase energy from outside to meet the power demands, and that leads to increase in our electricity cost. Moreover, the coal reserves are limited in India therefore the excessive use of thermal energy may lead to the deficiency of such resources. Hence, it is vital to minimize the use of such resources or to use them judiciously, if we want to save something for future generations. And instead of purchasing power from outside, we should make the optimal utilization of natural resources, which will subsequently help us to improve our ecosystem. It will be considerably cheaper if we make a shift from nuclear power to renewable energy. 

Tuesday, 28 July 2015

A Great Loss to the Nation: The Missile Man, Dr. Abdul Kalam Passes Away

Dr. A.P.J. Abdul Kalam, the nation’s 11th president, widely acclaimed as the people’s president, passed away, leaving a noticeable void that cannot be filled. It is hard to believe for each of us that we are now in a world without him. It is really a bleak day for India.

Born in a poor Tamil Muslim family in Rameswaram, Tamil Nadu, Avul Pakir Jainulabdeen Abdul Kalam overcame many obstacles and difficult circumstances to study physics and aerospace engineering. He received India’s top honours including the Padma Vibhushan, Padma Bhushan and Bharat Ratna.

He started his career as a scientist and science administrator at the DRDO in 1960 after finishing his graduation from the MIT University- Chennai. There, he first designed a small helicopter that he designed for the Indian Army. Later he joined ISRO, where he was the project director of India's first indigenous Satellite Launch Vehicle (SLV-III) that brought him great laurels and prestige. He played a vital technological and political role in India’s Pokharan-II nuclear tests before he became the president of India. He was closely involved in the military missile development efforts and Integrated Guided Missile Development Programme which developed missiles like Agni and Prithvi. 

Dr. Abdul Kalam succeeded K.R. Narayanan and served as president for complete five years from 2002 until 2007, enjoying the backing of both ruling and opposition parties.

It was a quirk of fate that he breathed his last, while doing he liked the most-educating students- at the Indian Institute of Management-Shillong (IIM-S). He was a top scientist of global reputation, whose contributions to the progression of science and technology are unparalleled. His rise from a science lab to Rashtrapati Bhawan had earned him the sobriquet Missile Man.

A P J Abdul Kalam was a pragmatic educational scholar and visionary, who had opened new opportunities for studies and research in the area of ballistics, aeronautics and aerospace mechanics, and metallurgy. Dr. Abdul Kalam believed that education is the most crucial element for the development and prosperity of a country. He had a notable contribution in the field of education. He loved being amidst children and believed that any education system is good which has the capability to instil five aspects such as inquisitiveness, technology, creativity, entrepreneurial and moral leadership in the students’ minds. An eminent scientist and a great thinker, Mr. Kalam had the inimitable honour of receiving honorary doctorates from 30 universities and institutions.

Despite his immense power and position, he never had any kind of pride about himself. In fact, he led a very simple life and treated everyone with a lot of respect. He was a modest and an iconic personality, who with his phenomenal ability and strong leadership skills brought together people from different distinctions and disciplines to work together. His contributions to education, politics, India’s space and research projects and various other sensitive defence projects are remarkable.

He will be sorely missed and remembered forever.