THE HINDU EDITORIAL : MAY 7, 2018
THE HINDU EDITORIAL : MAY 7, 2018
a) GST’s complicated
With collections from the goods and services tax peaking at over ₹1 lakh crore in April, industry hoped the GST Council would make life simpler for an increasingly compliant tax-payer base. Indeed, at its meeting last week the Council decided to introduce a new compliance system under which a single monthly GST return will have to be submitted by firms, barring a few exceptions. However, this will only be done in a phased manner — with the first of three transition stages to begin six months from now. Discussions over simplifying GST returns have been under way for months and considered by the Council, a committee of officers and a Group of Ministers. Nandan Nilekani, chairman of Infosys Technologies, the firm in charge of the GST Network’s IT system, has been consulted. Yet, the solution offered has gaps. For instance, in the second stage of the transition to simpler returns, buyers will get provisional input credit even if the seller doesn’t upload the invoices. While this could lead to disputes, in the third stage input credits will only be granted after sellers upload invoices. If a seller defaults on depositing GST dues collected from a buyer and remains evasive, the authorities can reverse the credit availed by the buyer for such outstanding taxes. In any case, the timelines for the transition are long and bring fresh uncertainty for businesses still recovering from the initial jitters and confusion around the tax regime. Firms will again have to cope with significant changes in accounting software in the middle of the financial year. The Council, credited with swift and significant course correction in GST processes in its initial months, could have done more. The most troubling is the Centre’s push for the imposition of a cess on sugar over and above the 5% GST levied on it. A cess at the rate of ₹3 a kg is proposed to alleviate ‘deep distress’ among sugarcane farmers. Not surprisingly, this faces opposition from several States. It has been rightly argued that this will burden consumers while favouring larger sugarcane-growing States like U.P. and Maharashtra. In addition, a special sugar cess will signal a looming breakdown of the basic tenet of GST: the abolition of such cesses and surcharges, barring the compensation cess for funding States’ revenue losses for five years. Along with a proposal to reward digital GST payments, this has been referred to new ministerial groups, which are to revert in a fortnight. Lastly, the decision to make the GSTN a 100% government-owned firm, instead of the present structure with 51% private ownership, explains neither how this will address data security concerns nor the impact on the Network’s functional efficiency, which was the original stated intent for giving private players an upper hand in operations.
b) Mahathir’s challenge: on the Malaysian general election
Malaysian Prime Minister Najib Razak has many things going for him in the May 9 general election, but whether they will suffice in the face of a corruption scandal is an open question. With the economy growing at 6%, helped along by lavish infrastructure spending, Malaysia’s overall outlook could not appear more robust. But Mr. Razak’s opponent and erstwhile mentor, the 92-year-old former Prime Minister Mahathir Mohamad, is hoping to exploit the incumbent’s links to a billion-dollar corruption scandal in a state investment fund. The battle lines have been sharply drawn, but there possibly exists an advantage for the ruling Barisan Nasional (National Front), led by the United Malays National Organisation, insofar as it has had a long record in office. Also, almost 70% of the population are bumiputras, mainly Malays and other indigenous groups, that have traditionally voted for the UMNO. This group has benefited significantly over the years from Malaysia’s policy of according preferential treatment to it in terms of access to education and government jobs. Parliament’s recent approval of the redrawn electoral constituencies has reinforced allegations of gerrymandering and unequal sizing of electoral districts to benefit the National Front. The conduct of polling on a week day has led to allegations that this has been done to deter a large number of citizens working in neighbouring Singapore from casting their votes — it is believed that a lower turnout will work in favour of Mr. Razak’s party. The election campaign has seen an estrangement between one-time allies and a coming together of former foes. Mr. Mohamad, who has returned to frontline politics as the incumbent’s principal challenger, was instrumental in the installation of Mr. Razak. He was also once the arch-rival of the man he is standing in for, Anwar Ibrahim, the imprisoned leader of the opposition Pakatan Harapan (Alliance of Hope). Uncomfortably for the Prime Minister, news that some $4.5 billion had gone missing from a government fund coincided with the appearance of about $600-odd million in his personal account. Not many have bought his explanation of the sum as a gift from a well-wisher. Mr. Mohamad says the scandal forced him to stage a political comeback and lead a punishing campaign. The veteran politician has sought to channel public anger against the recent imposition of a goods and services tax, portraying the levy as a penalty to recover the losses on account of the missing funds. The National Front is therefore anxious to avert a repeat of its performance in the 2013 polls, when it was returned merely by virtue of the parliamentary seats it won, while losing the popular vote. The party is acutely aware that it needs to regain some lost popularity if it is going to make the best of this election.
WORDS/ VOCABULARY
1) Compliant
Meaning: Disposed to agree with others or obey rules, especially to an excessive degree; acquiescent.
Example: “a compliant labour force”
Synonyms: Acquiescent, Amenable
Antonyms: Recalcitrant, Blood-mined
2) Compliance
Meaning: The state or fact of according with or meeting rules or standards.
Example: “all imports of timber are in compliance with regulations”
Synonyms: Obedience to, Accordance with
Antonyms: Violation, Infringement
3) Barring
Meaning: Except for; if not for.
Example: “barring accidents, we should win”
Synonyms: Excepting, Excluding
4) Invoices
Meaning: A list of goods sent or services provided, with a statement of the sum due for these; a bill.
Example: “an invoice for the goods supplied”
Synonyms: Bill, Account
5) Evasive
Meaning: Directed towards avoidance or escape.
Example: “they decided to take evasive action”
Synonyms: Avoiding, Dodging
Antonyms: Direct
6) Availed
Meaning: Use or take advantage of (an opportunity or available resource).
Example: “my daughter did not avail herself of my advice”
Synonyms: Use, Benefit
7) Outstanding
Meaning: Not yet paid, resolved, or dealt with.
Example: “much of the work is still outstanding”
Synonyms: Incomplete, Undone
Antonyms: Paid, Finished
8) Jitters
Meaning: Slight irregular movement, variation, or unsteadiness.
Example: “picture jitter”
9) Cope
Meaning: (of a person) deal effectively with something difficult.
Example: “his ability to cope with stress”
Synonyms: Manage, Subsist
10) Imposition
Meaning: A tax or duty.
Example: “the government began levying special impositions”
Synonyms: Tax, Duty
11) Cess
Meaning: (in Scotland, Ireland, and India) a tax or levy.
A Cess imposed by the central government is a tax on tax, levied by the government for a specific purpose.
12) Alleviate
Meaning: Make (suffering, deficiency, or a problem) less severe.
Example: “he couldn’t prevent her pain, only alleviate it”
Synonyms: Reduce, Relieve
Antonyms: Aggravate
13) Looming
Meaning: (of an event regarded as threatening) seem about to happen.
Example: “there is a crisis looming”
Synonyms: Threaten, Impend
14) Revert
Meaning: Return to (a previous state, practice, topic, etc.).
Example: “he reverted to his native language”
Synonyms: Return, Regress
15) Intent
Meaning: Intention or purpose.
Example: “with alarm she realized his intent”
Synonyms: Aim, Purpose
16) Suffice
Meaning: Be enough or adequate.
Example: “a quick look should suffice”
Synonyms: Serve, Enough
17) Lavish
Meaning: Sumptuously rich, elaborate, or luxurious.
Example: “a lavish banquet”
Synonyms: Lush, Gorgeous
Antonyms: Meagre
18) Robust
Meaning: Strong and healthy; vigorous.
Example: “the Caplan family are a robust lot”
Synonyms: Strong, Sturdy
Antonyms: Weak, Frail
19) Erstwhile
Meaning: Former.
Example: “the erstwhile president of the company”
Synonyms: Former, Sometime
Antonyms: Present, Future
20) Exploit
Meaning: Make full use of and derive benefit from (a resource).
Example: “500 companies sprang up to exploit this new technology”
Synonyms: Utilize, Use
21) Incumbent
Meaning: The holder of an office or post.
Example: “the present incumbent will soon be retiring”
Synonyms: Holder, Bearer
22) Insofar
Meaning: To the degree that.
Example: She had done her best to comfort him, insofar as she was able.
23) Bumiputras
Meaning: A Malaysian of indigenous Malay origin.
Example: “bumiputra ownership”
24) Indigenous
Meaning: Originating or occurring naturally in a particular place; native.
Example: “the indigenous peoples of Siberia”
Synonyms: Native, Aboriginal
Antonyms: Expatriate, Migrant
25) Preferential
Meaning: Of or involving preference or partiality; constituting a favour or privilege.
Example: “preferential interest rates may be offered to employees”
Synonyms: Special, Better
26) Redrawn
Meaning: Draw or draw up again or differently.
Example: “the rota was redrawn”
27) Reinforced
Meaning: Strengthen or support (an object or substance), especially with additional material.
Example: “the helmet has been reinforced with a double layer of cork”
Synonyms: Strengthen, Fortify
28) Gerrymandering
Meaning: Achieve (a result) by gerrymandering.
Example: “an attempt to gerrymander the election result”
29) Allegations
Meaning: A claim or assertion that someone has done something illegal or wrong, typically one made without proof.
Example: “he made allegations of corruption against the administration”
Synonyms: Claim, Assertion
30) Deter
Meaning: Prevent the occurrence of.
Example: “strategists think not only about how to deter war, but about how war might occur”
Synonyms: Prevent, Stop
Antonyms: Encourage
31) Casting
Meaning: Discard.
Example: “he jumped in, casting caution to the wind”
Synonyms: Discard, Reject
Antonyms: Accept
32) Turnout
Meaning: The number of people attending or taking part in an event, especially the number of people voting in an election.
Example: “we reckon that thirty-five per cent is a good turnout for local elections”
Synonyms: Attendance, Audience
33) Estrangement
Meaning: The fact of no longer being on friendly terms or part of a social group.
Example: “the growing estrangement of the police from their communities”
Synonyms: Alienation, Hostility
Antonyms: Unity, Reconciliation
34) Foes
Meaning: An enemy or opponent.
Example: “his work was praised by friends and foes alike”
Synonyms: Rival, Adversary
Antonyms: Friend
35) Arch-rival
Meaning: The chief rival of a person, team, or organization.
Synonyms: Foe, Adversary
36) Veteran
Meaning: A person who has had long experience in a particular field.
Example: “a veteran of two world wars”
Synonyms: Expert, Old-hand
Antonyms: Novice, Recruit
37) Portraying
Meaning: Describe (someone or something) in a particular way.
Example: “the book portrayed him as a self-serving careerist”
Synonyms: Represent, Depict
38) Anxious
Meaning: Very eager or concerned to do something or for something to happen.
Example: “the company was anxious to avoid any trouble”
Synonyms: Eager, Desirous
39) Avert
Meaning: Prevent or ward off (an undesirable occurrence).
Example: “talks failed to avert a rail strike”
Synonyms: Prevent, Avoid
40) Acutely
Meaning: (with reference to something unpleasant or unwelcome) intensely.
Example: “the whole situation was acutely embarrassing”
Synonyms: Extremely, Very
Antonyms: Slightly
