Dear Madam,
You might have read my first letter.
Whether you read it or not, some favorable out come came.
With the same hope I am writing my second letter.
Madam, you have quoted Piciranthiyar about giving enough food to elephant and how elephant will crumple the field if not given enough food.
But now what we have been taught by Modern Piciranthiyar is that how elephant (FIIs) will crumple the field (Stock Market) when taken away some food given to elephant (FPI Surcharge)
Before this FPI surcharge issue subsides, lot of issues are coming up in Auto sector.
So far no meaningful announcement came for Auto sector.
Higher depreciation is applicable only to corporates, not individuals.
Higher registration is just postponed not removed. So punishment is just postponed, not removed.
Earlier you said GST is not in my hand.
Now saying placing request in GST council for reduction of GST.
Still there is no concrete news of your request, what reduction you are proposing and for how long?
Meanwhile news comes in media that GST Council is not in favor of GST reduction as it stands to lose Rs 50000 crore per annum.
I left my Teaching profession about 15 years before but still remember little bit of Maths.
GST for cars is 28%, SUVs 43%. You have got 2 choices.
1. Do not cut GST as you will lose Rs 50000 crore per annum, so let auto sales fall further, let people lose jobs, let auto companies go bankrupt. You have protected your income.
2. You can reduce the GST by 10%. Since auto sales have fallen one third, anyway you are going to collect one third less GST, if you reduce the GST by one third, sales will shoot up and will go to pre crisis level and still you collect the same GST, you do not lose even a single rupee.
So do you want to collect one third less GST and let auto industry collapse?
Or you want to reduce GST and let everyone survive with the same GST effect?
There are 3 possibilities in GST Council meeting.
1. Reduce GST and that is the best possible outcome. Markets will cheer.
2. Reduce GST only for few months. Even if this is your decision, I request do not announce. Just reduce, when things become normal you can always raise the GST by reasoning out. That is better than announcing now itself that GST reduction is only for limited period. There is no way you can judge the limited period by which auto sector will come to normal.
3. No GST cut: This is the worst possible situation. Markets and people will lose confidence in Govt. That will be the last nail in the coffin. Now the crisis of confidence is there. The Govt has nothing to Gain by this decision as I have explained above and will ensure destruction in the Economy.
Yesterday you have mentioned "In Economy ups and downs are normal"
Many supporters of BJP argue that Auto slowdown is Global phenomena.
Agree fully. Here the question is not about slow down.
When the sector is in slowdown, you raised petrol prices in budget, later UP raised local taxes for petrol, you have increased registration charges.
I fully support the significant rise in penalty for traffic violations but again the timing is very bad.
Slow down, we can handle but as FM what is your job.
Helping the sectors or adding salt to the wound.
We can face any problem if Govt stand by us.
We can not handle any problem if Govt stands against us.
Now the problem is not Economy slowdown, crisis of Confidence in Govt.
I request you to do everything possible to bring back the confidence.
Thank you.
You might have read my first letter.
Whether you read it or not, some favorable out come came.
With the same hope I am writing my second letter.
Madam, you have quoted Piciranthiyar about giving enough food to elephant and how elephant will crumple the field if not given enough food.
But now what we have been taught by Modern Piciranthiyar is that how elephant (FIIs) will crumple the field (Stock Market) when taken away some food given to elephant (FPI Surcharge)
Before this FPI surcharge issue subsides, lot of issues are coming up in Auto sector.
So far no meaningful announcement came for Auto sector.
Higher depreciation is applicable only to corporates, not individuals.
Higher registration is just postponed not removed. So punishment is just postponed, not removed.
Earlier you said GST is not in my hand.
Now saying placing request in GST council for reduction of GST.
Still there is no concrete news of your request, what reduction you are proposing and for how long?
Meanwhile news comes in media that GST Council is not in favor of GST reduction as it stands to lose Rs 50000 crore per annum.
I left my Teaching profession about 15 years before but still remember little bit of Maths.
GST for cars is 28%, SUVs 43%. You have got 2 choices.
1. Do not cut GST as you will lose Rs 50000 crore per annum, so let auto sales fall further, let people lose jobs, let auto companies go bankrupt. You have protected your income.
2. You can reduce the GST by 10%. Since auto sales have fallen one third, anyway you are going to collect one third less GST, if you reduce the GST by one third, sales will shoot up and will go to pre crisis level and still you collect the same GST, you do not lose even a single rupee.
So do you want to collect one third less GST and let auto industry collapse?
Or you want to reduce GST and let everyone survive with the same GST effect?
There are 3 possibilities in GST Council meeting.
1. Reduce GST and that is the best possible outcome. Markets will cheer.
2. Reduce GST only for few months. Even if this is your decision, I request do not announce. Just reduce, when things become normal you can always raise the GST by reasoning out. That is better than announcing now itself that GST reduction is only for limited period. There is no way you can judge the limited period by which auto sector will come to normal.
3. No GST cut: This is the worst possible situation. Markets and people will lose confidence in Govt. That will be the last nail in the coffin. Now the crisis of confidence is there. The Govt has nothing to Gain by this decision as I have explained above and will ensure destruction in the Economy.
Yesterday you have mentioned "In Economy ups and downs are normal"
Many supporters of BJP argue that Auto slowdown is Global phenomena.
Agree fully. Here the question is not about slow down.
When the sector is in slowdown, you raised petrol prices in budget, later UP raised local taxes for petrol, you have increased registration charges.
I fully support the significant rise in penalty for traffic violations but again the timing is very bad.
Slow down, we can handle but as FM what is your job.
Helping the sectors or adding salt to the wound.
We can face any problem if Govt stand by us.
We can not handle any problem if Govt stands against us.
Now the problem is not Economy slowdown, crisis of Confidence in Govt.
I request you to do everything possible to bring back the confidence.
Thank you.
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