http://economictimes.indiatimes.com/articleshow/1045485.cms
VAT as caste war EDITORIAL TIMES NEWS NETWORK[ TUESDAY, MARCH 08, 2005 10:59:07 PM] VAT is in trouble, thanks to bania power. West Bengal finance minister Asim Dasgupta, who heads the empowered committee of state finance ministers on a state VAT insists that the new tax will come into effect on April 1 as planned. Although the biggest state, Uttar Pradsesh, has refused to join, others will go ahead, he says. This brave talk ignores the fact that Rajasthan and Chattisgarh have also said no, and Madhya Pradesh and Tamil Nadu are having second thoughts. Yet if UP is brought around, probably the others will follow. VAT holds the key to rescuing bankrupt states by checking rampant sales-tax evasion. Yet several states are resisting it because of fierce lobbying by the trader lobby. The traders say the tax will subject them to harassment by corrupt tax inspectors, and nobody can deny the possibility. Yet fiscal stress makes VAT necessary at the state level. It will also be a building block for a subsequent national goods and services tax. The key persona in VAT is Samajwadi Party chief Mulayam Singh Yadav. Traditionally, the SP has been a party of backward castes, for whom the bania is a major foe. Yet recently he has come to view the BSP as his main threat, and so has forged an understanding with the BJP to remain in office. He has also garnered a new coterie of businessmen including Anil Ambani. But surely this is no reason to prefer the trader lobby to global best practice in tax collection. Possibly Mulayam is not moved by technical fiscal arguments. So he should be spoken to by Asim Dasgupta in blunt caste terms. Can you not see that there is an upper caste conspiracy to loot your treasury, and weaken your ability to spend on development programmes? Yes, you need BJP support in UP, but that support is tactical, and not based on surrender to the bania lobby. Accepting VAT will in no way threaten BJP support to you, yet will transfer money from banias to Yadavs and other OBCs in your Cabinet. What are you waiting for? Forget tax reform, Mr Yadav, think caste war. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "Ours is a battle not for wealth or for power. It is a battle for freedom. It is a battle for the reclamation of human personality." - Dr BR Ambedkar ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
