COVID 2019- difficult times – we must quit subsidies, if it is possible.

[DEVKUMAR KOTHARI]

Earlier article:

In some of my earlier articles I had requested to readers to quit subsidy on gas cylinders (and other things and services). I hope that most of them had forgone subsidy and have also encourage relatives, friends and associates to forego such subsidies.   I believe that availing subsidy should only be in cases in which it is very much necessary and without subsidy one cannot adopt a particular course.  for example subsidies for some studies or medical treatment etc.

Some subsidies are inbuilt for example, subsidies related with infrastructure facilities (roads, railways, education, medical facilities etc.in government organizations and philanthropic organizations) are in built and only in few cases one can forego.

Now we can forgo subsidy on gas cylinders and some railway tickets. There must be more facility for giving up subsidies.

We find that voluntary giving up of subsidies is not easy tasks for many, even if they can do so. This is because we compare many rich and powerful persons enjoying far more valuable subsidies and because subsidy is considered as a right and not an obligation.

Giving up subsidies will improve moral and self-esteem and that will be many times valuable in comparison to petty amount of subsidy for gone.

Readers may refer to my earlier articles on this issue. Reference and link of some of them are as follows:  

Why subsidy to consumer of twelve gas cylinders in a year?

An Article By: - CA DEV KUMAR KOTHARI

January 30, 2015

https://www.taxmanagementindia.com/print/print_Article.asp?ID=6033

Budget suggestion: Why to collect full price of LPG cylinder and then to refund subsidy? People residing in pucca houses and having income above some limit should be disable from claiming subsidy.

An Article By: - CA DEV KUMAR KOTHARI February 23, 2015  

https://www.taxmanagementindia.com/print/print_Article.asp?ID=6080

Budget 2015 - essential goods and services must be exempted from taxes for poor people and subsidies must be only for poor people.

An Article By: - CA DEV KUMAR KOTHARI

March 4, 2015

https://www.taxmanagementindia.com/print/print_Article.asp?ID=6136

It is unfortunate that many rich people also find it very difficult to voluntary disclaim  subsidy. As suggested by me in my articles the disentitlement of gas subsidy  must be compulsory for people living in Pucca houses (a standard can be prescribed) and those having income above certain limit.

My recent communication with many persons in my contacts:

 

Quit Subsidies 🏻🏻🏻🏻🏻

Dear friends, I am confident that most of you, your relatives, friends, associates who are capable to quit government subsidies like GAS / LPG ,CNG,.. kerosene , ration , industrial subsidies ... Etc have long ago  already quit such subsidies . In case by  mistake , omission, busy schedule or any other reason u are still enjoying subsidies, which u can quit, without difficulty, please quit subsidy

 This will be an important contribution for the nation in difficult times and will also improve our esteem and moral. CA Dev Kumar Kothari

Responses:

Many appreciated the message by symbols like thumbs up, Namaste, smiley , and through words like good suggestion to quit subsidies.

Reply from a very senior GOI officer: 

Sir, Why do I leave it. You are aware that salary of MP, MLA judges are free of taxes. They are still getting ₹ 15000 as telephone allowance/ prerequisite. The food they get in the mess at parliament house etc are highly subsidies just like free. They can get multiple pensions, if they are eligible. The cut of 30% is not equal to even taxes a common citizen of the country. The contribution from MP fund towards relief is another example of their selfishness and unsatisfying hunger. Further, a middle class person, the subsidy is a meagre sum. In my opinion, one should not even made such appeal or share these messages.

Regards. 

My reply: 

I hope if upper middle class of general citizens  start quitting subsidies, our leaders will also come forward to quit subsidies, and public will also force  them to quit subsidies. A mass scale attempt will definitely make an impact. Unfortunately we find many super rich people are still enjoying gas subsidy in own names and also in names of servants. 

My further observations:

The views expressed by one of GOI officers as stated earlier,  in reply to my message is true feeling of public at large, in fact it is not a case that he has not forgone subsidy. He has expressed public feelings. Because many rich people have the same feeling and therefore have not for gone many subsidies. The fact is that many of industries are persuading governments to grant various subsidies. It seems that there is a mind-set, amongst many of people that without subsidy we cannot survive. 

This mind set need to be changed. An industry can be set up without a subsidy but if a subsidy scheme is in vogue, the entrepreneur has to consider even a petty subsidy also as a means of finance as per banking norms. It is ground reality that while availing an industrial subsidy, one has to spent a significant part of it for approval and disbursement of subsidy, many hours of executives or professionals are spent in process of getting subsidy, still we have eagerness for subsidy. By granting petty subsidies, many interventions are assured for government officers and concerned ministers. Is not this a case of loss of self-esteem of entrepreneurs?

By quitting subsidies which one can quit, one can really improve his/ her self –esteem. By accepting a subsidy, definitely there is loss of self-esteem.

We should not consider subsidy as a matter of right but a help. Therefore help seeking approach must be adopted only when there is no other way out.   

Discussions to this article

[KASTURI SETHI]

Dear Sir,

I agree with you on all the points. Your article is timely. Subsidy is a help and is loss of self-esteem for those who can afford and still enjoying subsidy. Their conscience should prick and they should forego subsidy in the interest of the poor as well as in the interest of nation. Everybody should come forward to contribute to PM CARES FUND according to one's capacity. Many a little makes a mickle.

Here I raise two questions. Firstly, what about those landlords who are getting supply of water and electricity free as a farmer. This facility was initiated for small farmers and now being availed by all (including landlords). Govt. will have to make up the loss of revenue by other means. What I want to say why people are tempted by the phrase , 'free lunch' ? "Free lunch" has become psychological food. Why free ? If we expect anything free, it means we are parasites.

Secondly financial well-off families are enjoying the benefits of reservation policy based on caste.Rich families should give up the benefits in the interest of those who belong to general category but are poor. Reservation policy is a great set back to the nation holistically.

It is endless discussion. Anyhow I appreciate your concern for the nation. In this period of health crisis, all must unite and work for the nation with dedication and devotion.