Tuesday, June 13, 2006

State as shylock - II

Further to the previous post

This is concerned with the skewed tax-structure. The reason state imposes taxes and rates which can only be called unreasonable for the simple reason that it has to fund itself.
This means to finance the vast bureaucratic set up as well as ambitious welfare projects.

Since India has a bloated machinary it translates into inflated bills which are to be funded by taxation. This is aggravated by ever increasing numbers of welfare programmes and subsidies doled out on regular basis body politic consisting of fossils from socialist era, believers of competitive bankruptcy through populism and practitioners of ancient art of corruption.
Since oil is one commodity whose demand is relatively unaffected by the prices, it can be easily taxed*

And this is the reason that all the parties opposing the price hike whether BJP or Left are hypocritical, for they do not propose any viable solution. It is not their aim to downsize the babucracy or fold up the myriad schemes created solely for garnering votes (without which it is next to impossible to rationalize the tax structure).They are opposing the hike from purely opportunistic motives, trying to counter populism by populism. In the end, the only losers will be Indians.

* Not sure on this point

तू तडाक

बात को दिल पर मत लीजिएगा
मराठियों के लिए मेरे दिल मे बहुत सम्मान और आदर है.महाराष्ट्र का लोक संगीत, साहित्य,रंगमंच वगैरह वगैरह में अपना अलग स्थान है.
सब कुछ ठीक है, सिवाए एक चीज़ के, कुछ मराठी सज्जनों का "तुम" और "तू" का प्रयोग.मैं मराठी का जानकार नही हूँ इसलिए दावे के साथ कुछ कह नही कह सकता परंतु मैने सुना है की अंग्रेज़ी के समान मराठी में भी आप के लिए कोई शब्द नही होता. यह समझ में आता है, जो समझ में नही आता वो यह कि हिंदी में "आप" (जो कि सम्मानजनक है और हमेशा अपरिचतों तथा सहकर्मियों के साथ उपयोग करना चाहिए) होते हुए भी कुछ सज्जन इसका प्रयोग क्यों नही मरते. इसका परिणाम यही होता है कि सामनेवाला अपमानित अनुभव करता है और बात करने से कतराता है.

State as shylock - I

This is in part prompted by this post written by confused

In response to the post, I had raised a doubt that whether the quantum of rise in petroleum products is really justified given tax structure and restricted market.

This article (via Indian Express) by Ila Patnaik confirm what I supsected.

In brief there are two points

One The tax/duty on fuel prices is imposed as a percentage of oil price. This means a windfall for both central government as well as state government when the oil price rises.

From the article

" Of the Rs 43.49 per litre that the consumer in Delhi was paying for petrol before the hike, the value of the petrol was Rs 20.42. The Central government levied Rs 14.63 (an excise duty of 8 per cent plus a specific tax of Rs 13 per litre) and Rs 0.30 as education cess. Sales taxes of 20 per cent were levied on the resulting price of Rs 35, which meant that Rs 7.25 went to the Delhi government. When the value of petrol goes up, both the excise collected by the Centre and the sales tax collected by the state go up. "

The author also highlights the remedy

"The Rangarajan Committee on pricing and taxation of petroleum products has also recommended that there is a need to shift from the current mix of specific and ad valorem taxes to a pure specific levy. It recommended that a specific levy of Rs 14.75 per litre for petrol and Rs 5.00 per litre for diesel may be imposed. "


The second point is that oil sector remains protected resulting that there is insufficient competition, thus driving up the oil prices. Trade in oil (whether crude or product) is restriched by barriers explicit as well as implicit.


Therefore while it is nobody's contention that Indian consumers be allowed to have a free lunch, it is only reasonable to expect reform & easing up of restriction in oil industry as well as rationalization of tax structure.

PS Just to clarify, this post is not a rebuttal to the post by confused. Rather it was my attempt to have a better understanding of the issues involved.

Monday, June 12, 2006

Our honourable despots

Stop pro-quota stir: SC orders Centre,

This kind of encroachment by judiciary into realm of legislation and even right of dissent is just a further arguements into why Judiciary should stick to interpreting laws and not enacting new ones.

Sadly while our judicial system remain in tatters, the esteemed lordships seem more concerned with public posturing. One would have thought that with amount of jurisprudence they have they could have proposed way to simplify our legal statues thus removing a big hurdle in ensuring justice for all.

Thursday, June 08, 2006

When Martyrdom Is Reprehensible

Via Slimes

Zarqawi gone, Al-Qaeda pledges to continue 'holy war'

"We want to give you the joyous news of the martyrdom of the Mujahed Sheik Abu Musab al-Zarqawi,'' said the statement, signed by "Abu Abdel-Rahman al-Iraqi,'' identified as the deputy "emir'' or leader of al-Qaeda in Iraq. "

Martyrdom... is the only way in which a man can become famous without ability.
George Bernard Shaw The Devil's Disciple (1901) act 3


It is the cause, not the death, that makes the martyr.
Napoleon Bonaparte (1769 - 1821)

The "other" other half speaks

Although I am not particularly nostalgic about my ulma Alma-mater [boy do I suck -ed], there are some moments when I feel proud of my association. The following article gives me such pride.

You have made me feel low again, Mr Arjun Singh (Via Indian Express)

It is truly one of the positive accounts in the reservation debate by Gautam (OBC and ex-IITian)*

No one opposing reservation claims that caste and caste based discrimination is not a reality in India, however our main contention is that reservation is not a very effective remedy for it. Worse it aggravates the disease instead of curing it.**

It is now five decades since reservation was adopted and still pro-reservationist are reluctant to supply statistics.

Instead of helping in a caste free society, today we find India more fragmented than ever on caste lines, with even the brightest (this doesn't include me) and talented group facing possibility of division. And does it really matter to some one who is being persecuted whether his oppressor is a jat or yadav instead of a thakur or kayastha*** ?

When someone says that injustices of 3000 years can not be wished away in a day (in itself very inaccurate and misleading meme, but more on it later) it sounds a serious case of shuffling to me.

Does this imply that reservation are open ended. Are there any parameters to decide that reservation is not required. What is the logic for providing reservation for second generation?
All this requires sane analysis, not pandering but this is not going to happen soon.

IITs because of talent they attracted were one of the few shining points in otherwise socialist India (cursed by Nehruvian penalty), they were also places where forget caste discrimination even caste identity was for all purposes non-existent. Sadly, due to misguided do-gooders and pandering politicians there is serpent of caste in the paradise.

* I really cringe identifying a talented young man by his caste or creed. Infact I find it really humiliating as an Indian that one has to go to IIT to what is his right.
One of casualties of the reservation will be the students like Gautam who qualified on merit, but will be counted along with the reserved category.

** This is obvious to most, however in the end reservation is solely a political issue

*** I have mentioned caste just for purpose illustration, no offense or implication is intented.

PS It is not to claim that every poor boy can come to IIT. However if someone thinks that IITs are full of rich spoilt kids or casteist middle class, then (s)he would be surprised to know the number of students from very modest background. Students from backward places of states like Bihar and UP (where there is no employment) put their sweat into studies to qualify for the JEE.

For reference see the story of Patwatoli, from which one of my best friend hails. (Some stories claim that it is a village of Dalita, I am not sure about it. As my friend told me it is a village of weavers (Patwa ki Toli), OBCs though not numerically superior, which is why they will not be heard, who settled here from Rajasthan one hundred years back)

Sandeep writes about it here
Update: An article by a IIT professor (who happens to belong to "OBC")

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Wednesday, June 07, 2006

Breaking news... (fake but accurate ™ )

Nitin (who is a capitalist oppressor) in this post disclosed that one more enemy of proletariat will be joining the hegemonist portal (http://www.nationalinterest.in/). Although he declined to reveal the identity of latest danger to kleptocratic socialist character to Indian republic. This blog has through old fashioned investigative journalism unearthed probable list of future blogger. The list of the candidates are below.


1) Lord Voldemort - Known to be an aggressive merger & acquisition specialist in the world of wizards, he has long been hailed as a role model for a free market enterprise. From his modest begining as an orphan to his rise as most dreaded dark wizard, he might have come long way but he remains commited to idea of a society based on capitalist ideal. On being asked about the possibility he refused to answer, significantly however, he was seen wearing "I heart acorn" T Shirts.

2) Ghost of Gengis Khan - One of the earliest supporters of gloabalization, his spirit has responded favourably to the prospect of joining the portal of dreaded extremists. However difficulties owing to non availability of interface which support blogging for ghosts.

3) Hannibal Lector - An avowed anarcho-libertarian, he has been known to cook up interesting albeit provoking dishes. The blogger did not approach the professor, not being enthused by the prospect of possible transformation into gastronomical delight. However, the experts consider him to be a strong contender for the den of evil portal.

4) HAL 9000 - Rational, logical, cold, inhuman in other words an ideal capitalist.

5) Darth Vader - While his views on market are not known, he has terrorized millions of viewers by endless (and meaning less ) saga of stars wars. This is reason enough to include him in the legion of vile profiteers

Update On suggestion of Cynical Nerd The other hegemonist here are two additions

6) Mogambo (not this, but this) - As anyone (who was not too busy Sridevi-navel gazing ) will vouch, Mogambo was the lone warrior for free market and global trade in a socialist India.
While Mr India (clearly a lame attempt to present nationalist parochialism in egalitarian set up)
was able to thwart his plans to bring Wal Mart to India, Mogambo is quite upbeat about his prospect of oppresseing the oppressed Indians.

7) Zakhaku - Main antagonist of Captain Tara in Space City Sigma (Which was lifted by Gene Roddenberry to create Star Trek and before wimpy Milind Soman enacted Captain Vyom, a blemish on Sigma) With the exception of Darth Varder all the villains above were limited to creating misery only on a planet level. In contrast this great figure operated on a galatic level and in the true tradition of capitalist low lifes sucked the lifeblood of billions.