This refers to your editorial, ‘Cessed out’ (October 21). The introduction of GST is welcome as it would ensure implementation of a much delayed reform of the tax administration. The report that the Centre and States have “converged towards a consensus” on levying a cess in addition to the highest rate of tax on luxury and sin goods, however, is not good since expansion of the idea of addition of cesses to many more items in future could take place.
Segregation of goods into different categories based on price, utility, and necessity and fixing of rates based on merit would be better than adding a cess. The addition of goods into any of the categories in future depending upon these factors is possible. Dual control with States on items is against the very purpose of GST.
Bonded to challenges
This refers to ‘The rhinoceros in the bond market’ by TB Kapali (October 21). The RH Patel committee had already made some recommendations way back in 2005 to deepen the market but nothing moved since then.
A strong repo market for corporate bonds similar to one that exists for government securities and an active derivative market will help towards this end.
In the low interest rate scenario when banks are facing challenges in terms of stressed assets in the area of infrastructure funding accompanied by the issue of asset-liability mismatch and Basel-III challenges to meet capital adequacy norms, it is imperative that the Reserve Bank of India concentrate on laying a strong foundation and work towards developing a strong secondary market for bonds.
This will help corporates tap this area as an alternate source to meet credit demand.
Srinivasan Velamur
Chennai
Manmade disaster
At a time when the country is gearing up to celebrate Deepawali, the sad news that eight people were killed in a Sivakasi fireworks mishap has come as a shock and a dampener. There is no doubt that this is a manmade disaster which could have been avoided if only the owners of the godown and those who were transporting the firecrackers had adhered to the rules and regulations relating to the movement of crackers. It is a warning to the authorities to take effective steps to guard against such calamities in future, particularly during this festive season. People also have a responsibility to see they handle crackers carefully.
Tharcius S Fernando
Chennai
Tapping fear and greed
Come the festive season and your senses are bombarded with with words such as ‘free’, ‘offers’, ‘discounts’, ‘save up to ₹xx’, or ‘hurry, offer valid till stocks last’ from all kinds of media. Often the consumer ends up spending more under the pretext of saving money and buys more than the required quantity because of the tempting offers, which appeal to greed. The vocabulary taps into our fear.
Marketers have known for years that fear and greed can be used to drive consumers to take action. So it is not enough that only our phones are smart, today’s smart consumers who are bombarded with offers that promise free goods or at discounted rates should evaluate the offers from all aspects and askthemselves: Can the marketer really give something free to the consumer?
TS Karthik
Chennai
All that glitters is not gold
Congress leader Rita Joshi joining the BJP must have caused some fissures in the Congress party but the BJP's top brass should be wary of whole-heartedly welcoming anyone and everyone from rival camps into its fold. Often such people represent the power savvy, disgruntled and frustrated sections only. All these migratory birds may be ‘searching’ for safe political havens.
Mind you, all that glitters is not gold. Moreover, the BJP is neither a holy Vaitarni nor the highly revered Ganga where all such people (including self-serving politicians and fair-weather friends) would be purified after taking a reformist ‘dip’.
Given the growing number of political switch-overs, the BJP could well end up scoring a self-goal.
SK Gupta
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