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| Nothing unusual: Rather usually harsh on tipplers | | | Early Times analysis
Jammu, August 10 :-Finance Minister, Abdul Rahim Rather, has been kind to the people in Jammu and Kashmir when he opted for a mild dose of taxes in his budget proposals that he presented in the Assembly in Srinagar today. No doubt Rather presented a Rs.2081 crore deficit budget in the House he showed to leave the deficit uncovered to some extent and preferred to have a people-friendly budget proposals.
Well Rather has ever been kind to tipplers. If one reads his budget proposals that he presented in the Assembly earlier one would see that Rather has demonstrated bias against the tipplers. One who knows Rather intimately one would find him highly religious. He is one among a few senior politicians who has been a stickler for five times prayers and observes fast during the full month of Ramzan. His bias against tipplers is hence understandable.
In the past he would not spare liquor being sold from the CSD canteens. It was during his finance ministership that liquor prices in the defence canteens rose consistently as Rather had started increasing the excise by 10 to 20 per cent. A stage had reached that liquor prices in the CSX in Jammu and Kashmir was in the range of prices of liquor that was sold in the open market in Punjab and Haryana. No doubt the finanbce Minister has increased GST on liquor from 20 to 25 per cent he has not increased excise on liquor and other items CSD canteens. However, five per cent increase in GST would further push up the prices of liquor in Jammu and Kashmir because liquor dealers invariably do not stick to the increase indicated by the Government. They fix their rates as per their convenience. Still liquor prices would be cheaper than what it is in UP, Delhi, Himachal.
Rather seems to have hit hard non-vegetarians when he is in know of the situation in the Kashmir valley where 90 per cent people bank on mutton and chicken. He has stated that he has increased toll tax on poultry from Rs.2 to Rs.5 per kg. In the budget proposal he has proposed to levy toll tax on the import of sheep at Rs.10 per head. This is definitely going to result in further increase in the prices of mutton and chicken. Again a kg of mutton, even if it shoots to Rs.175 per kg and dressed chicken to Rs.100 per kg it will be cheaper than the rates of mutton and chicken in Delhi and UP.
The Finance Minister has argued that by increasing the toll tax on import of sheep and pultry bird he has decided to provide subsidy to sheep and poultry growers so that the local production registered a marked increase thereby spearing the state from banking on heavy imports of mutton and poultry birds. But the very saga of mutton and poultry production in Jammu and Kashmir has indicated that the mental frame of the rearers is unready to accept new challenges. Therefore despite subsidies no major revolution is expected in the production of mutton and poultry birds within the state.
The Government of India had recently hiked petrol and diesel prices by Rs. 5 and Rs.2 a liter respectively. Rather has proposed a hike of Rs.2 per litre. Additional cess on petrol and diesel had been introduced during the time the PDP-Congress coalition was in power. The then Muzaffar Hussain Baig had introduced the system of imposing additional hike of Rs. One per litre. Rather has doubled it to reduce the gap in the budgetary deficit.This step may result in increase in passenger fares. The Government no longer can resist pressures from owners of cabs, buses and three-wheelers. Increase in prices of petrol and diesel may push up process of other commodities as the traders will charge higher rates because of increase in transportation charges.
Rather deserves appreciation for having left power tariff untouched. Power tariff has undergone hike on a couple of occasions in the past and it may have had immediate reaction from people had Rather increased the tariff even by five per cent. One may say that the budget proposals are a clear indication of the Government's plan of holding the Panchayat and civic elections, if not this very year, but in the middle of next year. Hence very mild dose of fresh taxes to keep the voters in good humour.
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