27 Jan 2025 Indian Express Editorial


What to Read in The Hindu Editorial( Topic and Syllabus wise)

Eidtorial 1 : A voice of Defiance

Introduction: Begum Qudsia Aizaz Rasul, one of only 15 women among 299 members of the Constituent Assembly, stands as the sole Muslim female representative. Her groundbreaking role, often overlooked, demands renewed attention. As a voice for the largely invisible Muslim women of the pre-Partition subcontinent, Qudsia challenged the prevailing silence surrounding their identity.

 

Begum Rasul: A voice of reason

  • Cutting through her intersecting identities of religion, region, gender and class, Qudsia spoke out on the issue of a separate electorate.
  • Where leaders like Muhammad Jinnah advocated reservation for Muslims’ protection, Qudsia stood with Sardar Patel on opposition of reservation.
  • Begum Rasool stood in solidarity with Sardar Patel and fellow Constituent Assembly members like Tajamul Hussain and Hazrat Mohani who passionately opposed the reservation for minorities and warned against its ramifications.

 

Muhammad Jinnah and Muslim reservation

  • Muhammad Jinnah was beneficiary of Muslims reservation provided by British government, where he himself was elected through reserved seat for Muslims from Bombay.
  • The reservation for Muslims which were introduced in the Imperial Council in 1909, extended to state legislatures and continued till 1947.
  • The Constituent Assembly retained reservations for minorities, adopting a resolution to the effect on August 27, 1947.
  • However, in May of 1949, the Advisory Committee on Certain Political Safeguards for Minorities headed by Patel revoked the earlier resolution and decided to abolish the reservation.
  • The bloody aftermath of the Partition was the turning point in doing away with reservation for minorities.

 

Different voices on Muslim reservation in Constituent Assembly

  • While most Muslim members vociferously agreed with Patel, there were those like Mohammad Ismail Khan who changed their 1947 position and moved an amendment challenging the resolution.
  • Then there was Zahirul Hasnain Lari, who espoused the system of proportional representation as a means to safeguard the interests and rights of the minorities by citing the examples of countries like Belgium, Switzerland and even Ireland, a plan which was deemed unworkable by others.
  • Syed Muhammed Saadulah from Assam sought reservation for a limited period.
  • Begum Rasul had unambiguously opposed Muslim reservation.
  • She held that in a true secular country like India Minorities should throw themselves entirely upon the goodwill of the majority community.
  • She held that reservation is a self-destructive weapon which separates minorities from majorities for all time. It gives no chance to the minorities to win the trust of the majority.

 

About Begum Qudsia Aizaz Rasul

  • Hailing from an affluent family in Malerkotla, in united Punjab, Begum Aijaz was no mere symbolic leader.
  • She successfully contested from a non-reserved seat in 1937 for the United Provinces Legislative Council elections and also became Leader of Opposition in the UP Assembly in 1950.
  • In 1947, she became the only Muslim woman member of the Constituent Assembly.
  • In 1952, she was nominated as a member of the Rajya Sabha.
  • Despite her privileged upbringing, she was vociferous in her opposition to the zamindari system and advocated its abolition.
  • In her later years, Begum Rasul was also the president of the Indian Women’s Hockey Federation, a post she held for nearly two decades.
  • In 2000, a year before her death, she was awarded the Padma Bhushan by the Government of India in recognition of her contributions to social work.
  • Though she gave up the purdah when she won her first election in 1937, she became the voice of the silent Muslim women, the minority within the minority.

 

Conclusion: Begum Rasul’s voice was that of defiance and dissent, as she urged her Muslim sisters to step out of the shadow of the veil. The sole Muslim woman member of the Constituent Assembly, Begum Rasul opposed religion-based reservation and spoke up against conventions, like the purdah, that shackled women like her.

Editorial 2 : Let’s overhaul the tax system

Introduction: The 55th GST Council's decisions reflect a concerning shift back to harmful practices—frequent rate changes, retrospective taxation, and revenue-driven policies—that undermine growth, discourage investment, and erode trust in India's economic framework.

Chronic Tinkering with GST Rates

  • Frequent changes to individual GST rates signal a return to harmful past habits.
  • High tax rates suppress demand, dampen growth, incentivize tax evasion, and fuel the black economy.

 

Retrospective Taxation and Its Repercussions

  • Retrospective amendments, such as those nullifying Supreme Court judgments, undermine the rule of law.
  • Denial of relief to businesses, even after prolonged legal battles, sends a negative message to investors.
  • Example: The 55th GST Council’s decision to nullify a Supreme Court judgment on input tax credit for warehouses and infrastructure projects.

 

Damaging India's Investment Reputation

  • The retrospective taxation is denting India’s image as an investment friendly country.
  • The Vodafone retrospective taxation debacle cost India Rs 8,000 crore and damaged its global image.
  • Such actions erode trust and deter foreign and domestic investments.

 

Single-Minded Revenue Focus

  • GST Council prioritizes revenue maximization over rationalizing rates and simplifying the system.
  • Arbitrary demands through show-cause notices and complex notifications harm businesses.

 

Input Tax Credit Denials and Real Estate Impacts

  • Levying GST without input tax credit is morally unfair and economically harmful.
  • Taxation of lease rentals, assignment of leasehold rights, and joint development rights negatively affects the real estate sector and affordability of housing.

 

Need for Empirical Studies on Tax Impacts

  • Studies are essential to assess the effects of high taxes on consumption and demand.
  • Lowering GST rates could stimulate demand, improve competitiveness, and boost revenue.
    1. Example: A single GST rate of 12% on all hotels and restaurants. A maximum 18% GST rate on cement to reduce housing and infrastructure costs.

 

Return to a Retrograde Tax System

  • Characteristics of pre-liberalization tax systems—high rates, exemptions, and revenue focus—are reemerging.
  • Such systems benefit lawyers, accountants, and tax officials but harm businesses.

 

Adverse Economic Indicators

  • Imports from China increased from $70 billion in 2018-19 to $100 billion in 2023-24.
  • Manufacturing’s share of GDP fell below 15%.
  • The rupee’s decline has become a routine expectation.

 

Downward Spiral of Growth and Taxation

  • High taxes lead to slower growth, reduced revenue, and a need for even higher taxes, perpetuating a vicious cycle.

 

Way Forward: Need for a New Tax Policy Framework

  • Focus on growth maximization instead of revenue maximization.
  • Taxes should be a byproduct of growth, not the primary objective.
  • Implement “Reforms 2.0” to achieve a 9-10% annual growth rate.
  • Overhaul the tax system to stimulate growth and investment.

 

Conclusion: To foster sustainable growth and restore investor confidence, India must prioritize a tax policy cantered on simplicity, fairness, and growth maximization. The GST Council and tax authorities need to move away from retrospective amendments and high tax rates, embracing reforms that encourage investment, stimulate demand, and ensure long-term economic stability.