Dear Members,
By the time this issue reaches you, the Finance Bill, 2013 would be out and everyone would be engrossed in discussing and evaluating the implications and changes brought in the Bill, and attending Lectures and Seminars by the experts.
The most important event post-Budget, that almost all professionals look up to, is the talk of Mr. S. E. Dastur on Direct Tax Provisions of the Finance Bill. Year after Year, Mr Dastur from the BCAS platform, addresses the crowd of almost 3500 to 4000 at Yogi Sabhagruha, Dadar (E), and many more watching a live webcast. This year’s talk of Mr Dastur would make a history in BCAS books, as it would be his 25th talk for BCAS. It’s a treat to the mind and ear, to hear Mr Dastur analysing the budget provisions . The members and others in the profession who missed his live talk can watch the same on BCAS Web TV.
The other stalwart in the field of Indirect Taxation, Mr. Vikram Nankani, will address on Indirect Tax Provisions of the Finance Bill, 2013 on 13th of March at IMC.
While you make your analysis and study of the Finance Bill, 2013, we too at BCAS start gearing up and work for it’s most prestigious and acclaimed Publication, BCAS Referencer 2013-2014, which is in its 51st year and would be released in June 2013. At this juncture, let me share that the BCAS Referencer 2012-2013 App is now available for download both on Android and Apple store.
After the presentation of the Budget, once the anxiety is over, every section of the Society talks about the impact of the Budget, who are the beneficiaries and who are the losers. But all discussion ultimately ends with the most sensitive issue and that is Inflation.
Let me illustrate the same with recent reports after the presentation of the Rail Budget on 26th February. Railway Minister Mr Pawan Kumar Bansal has tried to take a small step by linking freight tariffs to oil prices, to make railways viable.
But, India Inc has expressed concern over the hike in freight rates, which they feel will add to the gloom in an already depressed business environment which may lead to higher inflation. Also, the issues surrounding government spending, and the massive deficit, always brings the topic of inflation to the forefront. The subject of inflation has remained an emotionally charged topic of debate over the last several years.
But I for one always pose before myself and struggle to find answers to a few Questions, like:
What is Inflation, and why is Inflation so widely feared ?
How does Inflation impact one’s life ?
If it’s a major concern, why hasn’t it been tackled systematically ?
Why the Government has failed to curb Inflation ?
Why Reported Inflation seems different than Reality ?
Is Inflation the Endless Farce ?
I would like you all to ponder over the above Questions, in the light of the following thoughts:
We all, while talking about money and the price of goods and services, use the word “inflation” quite regularly. But honestly speaking, few know what it actually means, what it measures and how it is calculated.
We often hear an older person talk about how different things were 40-50 years ago. It only costed five rupees to see a movie. A house only costed about Rs. 100-250 per sq. ft. In the intervening years, prices have risen, sometimes drastically. Seeing a movie in the theatre now costs about Rs. 200-350; and a house costs about Rs 10,000-50,000. From 1973 to now, an Indian pays 48 times for one litre of fuel. That’s inflation.
Many economists argue that a low steady rate of Inflation as opposed to zero or negative rate is good for the economy. They advocate that “Inflation is the grease on the wheels of the economy”.
On the other hand, the common man is least interested in knowing either the WPI/CPI or the calculations thereof. What he wants is a reasonable price and that he is not made to pay a higher price for the same item every next time he goes to market.
What common men or consumers don’t realise is that once a price increases, any future drop in inflation doesn’t have an effect on the earlier price. It just means that we will pay slightly less on the increase going forward.
For me, inflation is one of the catch phrases that’s heard all the time and is an inevitable threat to our material wellbeing.
Considering the present scenario and the political instability in our country, and the fear of future inflations hanging in the air, it would not be wrong to say that the future Law of Inflation would be : Whatever goes up will go up more & more.
I would end with a Quote by Milton Friedman:
