Rahul Mehta Gandhinagar LsCandidate
Proposed law-draft to reduce hoarding of grains, vegetables, pulses etc
---- give 20% of value of grain, vegeratble etc to the person who gives information about hoarding. And why SoMoKe, SoMoKe-andhbhagats and CoBhApSwaRa-workers oppose this.
.
There is TRIVIAL way to control hoarding of all vegetables etc. The basic scheme is to give 20% of value to the informant. The details are a bit involves. Here is basic draft, and later I have explained why SoMoKe, their andh-bahagts etc oppose this draft.
.
1. Right to Recall Food Minister, because without this, FoodMin will never implement the scheme. For draft, pls see RTR-RBI-Governor in chap-9 of rahulmehta . com / 301.htm
.
2. Jury System over FoodMin staff.
.
3. Every person except farmer who is in business of buying and reselling food items, if he has food items above 1000 kg , then will need to submit his tax-id, the address of his warehouses, quantity of items he has, and value of items he has.
.
4. If he is expecting a shipment, then he need to register the goods as arrived BEFORE the shipment comes. IOW, the books on Govt website must show same or MORE amount than he has in his warehouses.
.
5. He will need to pay 0.2% of the value the trader decides as tax per day (YES, per day).. The tax will be paid yearly but calculated on daily basis. The tax paid will get rebated from his income tax. . (so there is no double taxation for a genuine buyer and seller, I will explain later). And please note --- the trader will decide the value of goods he has. The tax will be on the highest value he disclosed in past 30 days.
.
6. The information on warehouses and supplies they have will be on net.
.
7. If any person gives information that a person is hoarding MORE than he has reported, then upon raid, all additional goods obtained will be confiscated and auctioned, and 20% will be given to informer.
.
8. If a person has stated value as Rs X per kg of some grain , vegetable etc, and real value is far higher, then a third party will have option to offer Rs X and obtain those goods from him with the help of Govt officer.
.
Details can be worked out. I request recallists to make a complete draft.
.
Later, I will explain why SoMoKe, their andhbhagats etc oppose this law-draft. Main reason is --- this law-draft will promote RTR-proposals.
.
====
How does rebate ensure that fast buyer-seller are not effect and ONLY hoarders are effeced.?
.
Say a person bought wheat Rs 20 per kg and later sold at Rs 30 per kg 2 months later. Then taxes he paid on wheat storing will be Rs 20 * 60 days * 0.2 % per day = Rs 2.40 . And taxes on income of profit of Rs 10 will be Rs 3. And he will get Rs 2.40 rebate on Rs 3. So total taxes are same --- Rs 3.
.
However, say he hoarded wheat for 2 years. Then wealth tax on wheat will be 700 days * 0.2/100 * Rs 10 = Rs 14 So that will kill all his profits from sale
.
===
.
Trader is NOT forced to sell at govt price
----------------------------------------------------------
.
The trader is free to disclose the prices he decides,. Say he bought onions at Rs 20 per kg,. Then next day, he can declare the prices as Rs 40 per kg. In such case, he will have to pay tax of 8 paise per day per kg i.e. Rs 2.40 per month. Much of the hoarding is done by large traders.
.
Now lets say a trader declares price as Rs 40 one day, and Rs 100 next day and Rs 40 third day. Then Rs 100 price will apply for next 7 days. i.e. price taken is HIGHEST PRICE he declared in past 7 days.
.
The tax rate will be 0 if the price declared wis below base price. eg say there is over supply of onions. Say cost price is Rs 15 per kg and market prie drops to Rs 10 due to over supply. . The Govt declare tax free price of upto Rs 20 per kg. i.e. traders storing onions and disclosing price of Rs 20 or less will not be taxed.
.
Later tax rate can be 0% ,. 0.2% , 0.4% and 0.6. eg say onion price at village mandi i.e price farmer is getting is say Rs 20 per kg,. Then tax rate can be as follows
.
Price below Rs 30 - tax rate = 0%
.
Price between Rs 30 to Rs 40 - tax rate = 0.2% on price above Rs 30
.
Price between Rs 40 to Rs 50 - tax rate = 0.4% on price above Rs 40
.
Price between Rs 50 to Rs 60 - tax rate = 0.6% on price above Rs 60
.
So hoarders will be forced to sell their goods at rapid rate.
.
Please note that for a fast buyer and fast seller, i.e. normal trader,. this law only creates a book keeping headache and not financial burden. And if he keeps ALL his trades in his books, then book keeping will be minor issue.
.