Ad Here  
February
March
April
May
June
July
 
 
The why of tax incentives Wise Presidents Welcome focus on core competence Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Should we change the official year? Kulandai was a giant Quality silica from Neyveli Alexa – Talking Wikipedia Funding the un-funded Adharma of opposition politics More heat than light Whistle-Stop Tour of Raghuram Rajan PPP mode for upgrading Corporation Hospitals Naidu will soon build a new Hyderabad Welcome thrust on trade in Modi’s foreign visits... An informal presentation - analytical, forward locking... An enemy’s enemy is a friend Online not in line with brick and mortar businesses... Tihar, Puzhal not different from Parappana Agrahara Building loyalty through the stomach Fall in crude prices help in oil sector reform TN accounts for the largest recruits by the IT sector The Jan Dhan bonanza Limit foreign borrowings to hi-tech, export potential projects... Mu Sigma – is no more The rise and fall of Annamalai University Contrarian cousins Come elections, come advertisements... More tributes to GR EEC at the National Media Centre Excel Generators provide the vital back-up Increasing non co-operation of state leaders Where a state respects its litterateurs… An inexplicable neglect Sri Lanka votes for change TIAM turns a full cycle Tribute CRS, a jewel among managers, is no more. Return to king coal for urea... Pharma – overdose of copying PC’s preference for professionals The power-full Hindujas CII projects higher growth… Dr C Rangarajan returns to Chennai Things happen by accident and not by design... When TN politicians can emulate Kerala's Poor quality of university VCs The ‘Jayanthi Tax.’ Kinetic Karnataka Solar thermal shines… Breaththrough in malaria control Parliament in paralysis... L&T- the specialty of special purpose vehicles Modi storms Silicon Valley Banning booze... The Swadeshi Trump Poor representation for Kerala and TN in Cabinet Nuclear power at the nucleus Tatas moving out of urea production... Remembering Indira Sivasailam... MHC should not return to its old indisciplined ways Haul over the coal A more liberated TN… A yen for wastage… Gas is the way forward Auto components surge… Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Bihar – Nitish Kumar adopts the Lalu model Make standards certification mandatory... Wanted: a second airport for Chennai Modi and the lady Readers' Mail Align crops to agro climate endowments… Where is Rajaji? S Ramanathan – a versatile musician, musicologist Recognition to role of NBFCs.... Road development slows down Focus on quality of power - its only around 170-180V A glass full of corruption Why land prices zoom in TN? Land reclamation from sea appears cheaper! IPL type auction for VCs? Music happens Paytm karo... Build close rapport with business leaders Don’t seem to feel the pulse… Intellectual of rare qualities Multi-faceted Venkat The balancing act CIPET hqrs to stay at Guindy – for the present? Odisha: spectacular win by Naveen Patnaik Revive development banks... Scientists urged to take up farmer-oriented research Solar, solar everywhere … Moily’s bold thrust No mega rail project for Tamil Nadu The sea- saw battle continues... He continues the focus on social amelioration A think tank for Chennai CSR and CMI: promise of another Srinivasan Ramanujan... Convulsions in The Hindu Sweeter prospects for sugar Sweet news for TN sugar mills Not just in-laws (and outlaws); they’ve renowned academics at the helm! Valli, they are more marginalised Lesson from Chandrababu Naidu Measuring roof tops in terms of KW/MW S V Raju – a ‘good’ true liberal The brown list of Venkitaramanan Of course, Gujarat is vibrant Godspeed, Chief Minister JJ The Ports’ Pasha expands into Tamil Nadu Tribute – UCAL Selvan… Quality education through the PPP mode London, London Narayan Naidu’s return augurs well for Seemandhra Preserving for the future Medical costs hit the roof... Delhi is distant Streamlining mandatory third party cover Delhi Chalo... Fortune 500 review Welcome GST Adapt Vajpayee dinner diplomacy No Maha Koottani in TN... R Sridhar steps down as CEO of Shriram Capital When the President was rendered homeless… The ‘Ayyo-yes’ is no more Another Indian music maestro at the UN Lalu’s envy, India’s pride The few handicaps... The Gulf aviation boom Noble nonagenarians... to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Five star activism stalls development activity New IT products of Ramco in the pipeline… Tough task taking states together Infrastructure funding – lessons learnt Marketing expert Balagopal is no more Tatas moving out of urea production... China invests in India More Shakthi to Das’ elbow Silver Years of Madras Musings Permanent secretariat for TN GIM He saved millions from starvation... Cleaning Ganga – relocate tanneries and install electric crematoria Secularism and anti-Hinduism ONGC at KG Basin Inflation: are we emulating Argentina and Brazil? IAS invades NDDB... Rahman at CIC Shanti and Sadhana through Music For whom the MIDS bell tolls? Editor's Says A proud Madrasi Telangana in top gear… Delhi returns to BJP F C Kohli - his concerns all embracing Welcome changes that testify to Jayalalithaa’s return to health Muffled voices for merit… Why this malaise in medical education? Padma Bhushan for A Ramakrishna West Bengal: mindless malignancy Rs.1600 crore paper board plant of TNPL Shaming of Tamils by Tamil farmers at Delhi The nuclear option Delhi is distant… When Ratan Tata visited SRM Fuel for thought How Air-India loses customs... Gay abandon in pricing Reliance’s TV – 18 ready to launch Tamil News Channel Roaring Ro-Ro facility TELANGANA at last…BUT Which side are you, Montek? L&T: focus on infrastructure and more infrastructure… A welcome initiative by the judiciary Tax agriculture Robber barons everywhere Protest masters... Mersal magnified Eternal support for capitalisation of PS banks Put expensive assets created to use... Engineering seats go abegging Airlines in India: cost and space The rise and rise of KCP TGS- The king storyteller Making ‘my Amaravati’... Plummeting profits of PSBs A Grand Finale for SN’s MS centenary at the US… Strengthen the base... There was flood of milk. Reason: no milk commissioner! Small units prefers to remain small... …and of a popular trade leader GM Technology at last! Air Asia India will set new benchmarks for budget travel When online building permits work…. Tribute – Manikam Ramaswami GNS - 100: our first subscriber The star of Spencers is no more Insurance companies bleeding, yet no decision on increasing FDI limit! SoA @ 80 Demise of a media baron... A C Muthiah – his munificent bequeaths to science Boy, can you beat these? Towards speedy justice Kudos to NDTV... Fortune for Indian Airlines IPL - no surprise this scam Editor's Notes Revving up the manufacturing sector WTO Meet: resolved to meet again A Grand Finale for SN’s MS centenary at the US… Colour-Chem’s colourful KRVS TN – agglomerate land holdings without alienating ownership Cement prices continue to rise… Bihar elections - the Rajaji formula worked When small is no larger beautiful.. Like Hinduism: many paths to reach God... More Shakti to resource mobilisation... A rich pool of talent not utilised…. Russi Mody – a tribute Cutting the nose to spite the face Maximising the micro pricing … A professional at the helm of IRDA... A friendly business group Tribute – M V Murugappan When nations steal growth from one another… Liberal imports idling indigenous capacities B H Kothari - a tribute Shale gas and its shallow future For whom the bell tolls? Shipping woes of Chennai companies No engine for this car This scant respect for Law Polls and promises Discoms deserve better… EVM is tamper-proof Computation of GDP – conundrums continue Waning interest in public discussions… Vibrant Gujarat All eyes on Sankara Nethralaya TN-leverage strength of BHEL, NLC... Diamond jubilee of Egmore Samskrt School
 
Welcome GST

Strong leaders of regional political parties like J Jayalalithaa and Karunanidhi could defy attempts by the Centre to bring about significant policy changes. With the over-emphasis on welfare measures that result in the proliferation of freebies and massive subsidies, Tamil Nadu’s finances were in bad shape. Remember the state, refusing to reform the power sector? The state delayed the formation of the State Electricity Regulatory Commission, resisted separation of generation and distribution through separate companies (neighbouring Andhra Pradesh did this to great benefit)... The finances of the electricity board were in a mess with regular losses and mounting debts. Jayalalithaa as Chief Minister routinely resisted several proposals of the Centre to the detriment of the state’s economy. She was also unmindful of the harm done to the state’s economy by such an attitude. 

A weak Centre under the UPA, dependent on the support of several regional parties, was unable to prevail over such strong local leaders. Such an attitude has also been giving rise to agitations by special interest groups. We witnessed these in recent times in the opposition to the hydrocarbon project in Vadivasal, the constant agitations by lawyers, farmers and more recently, by government doctors and transport workers. One can witness the impact of a strong Central government with a single party commanding majority in the Lok Sabha. The Modi government has been able to stand firm and not yield to demands considered unfair. One hopes pressure groups would realise the futility of protesting issues that had received extensive support on the national plane. The state leadership should also weigh the overall benefits to society not influenced by demands of sectoral interests. 

The traders’ lobby has gained considerable support and clout in recent years. On 5 May of every year, traders’ associations across the state observe the traders day and show their solidarity by closing all shops! The association presents a list of demands seeking special favours. 

The services sector that includes such trading is estimated to account for over 60 per cent of the GDP, but it has been accounting for less than 10 per cent of total tax revenues. Despite substantial growth traders have been successfully resisting attempts to bring their operation under the tax net. 25 years ago Dr. Manmohan Singh, as finance minister, proposed a simple presumptive tax ,of just Rs. 1400 pa, with no questions asked on books kept. The trader lobby successfully resisted and forced the government to withdraw this tax. State governments also lack efforts in bringing this huge section, quite a portion of this prosperous, under the tax net. 

The GST system, one hopes, would address this issue. This single factor can increase tax revenues substantially. This is yet another area for the Centre to focus. 


Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com