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blogid : 1530 postid : 4

Raising variuos Tarrifs in Punjab.

Different strokes
Different strokes
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Recently We, The residents of Punjab state, got the gift of Electricity tariff raise in the state. It was the first gift from the new corporation made after breaking the Punjab State Electricity Board. Earlier it was Fuel Tax hike, bus fare hike, VAT Surcharge Hike, Tax on DTH service etc. The Rationale behind the raise is very difficult to get at least to me. People who pay honestly are made victims and people who evade taxes, steal electricity etc. pay the same price. I have never seen any Govt. Dept or board or company start making profit after price hike or their loss is reduced after price hike. Tightening the grip by price hike is no solution. If Govt. is loosing money, the problem must be tackled from various angles. Few steps Govt. can take are as follows:
Use technology(it is readily available) to plug the holes that drain tax payers money. Power theft, tax evasion, corruption, indifference of Govt. Employees and officer, and many other areas must be kept under control with the help of technology.

Encourage (not force) people to pay what is due. Use the carrot and stick method. Reduce tariff so that public can pay easily and make strict punishment for non payers.

Political parties and leaders must look beyond self and lead from the front. In Punjab the bus fare hike and tax on DTH is viewed as a step by Govt. to benefit Leaders own businesses. The buses and cable in Punjab is run by the companies owned by Leaders in Ministry and it is not difficult to see who will get benefit from the Bus fare hike and tax on DTH.

Be transparent, Tax structure is least transparent. Public who pays taxes does not know where the money is spent or what are the benefits they get. Even if they get benefits they cannot relate it to taxes they pay. it is only perceived that some leader is getting benefit out of it.

Take bold steps, Leadership must take some bold steps without the fear of loosing votes from a community or loosing the elections.

Stop certain subsidies, Not all the subsidies are wrong but those must be implemented with care. All subsidies which raise the standard of some people can be continued and subsidies which are bleeding the state dry without long term benefit to target community must be stopped.

Make a long term plan for development and work on it religiously.

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