Why Did It Take So Long for the Government to Exempt Sanitary Napkins from GST?
The removal of Goods and Services Tax (GST) on sanitary napkins sparked a myriad of reactions, ranging from cheers of relief to criticism from various quarters. It is intriguing to explore why it took so long for the government to make this decision, and the dynamics that shaped public opinion.
The Role of Media Perception and Public Opinion
Although the media has long been critical of a 12% GST on sanitary pads, the situation post-removal has seen a flip in narrative. Once the GST was removed, there was a surge of articles questioning the move, attributing it to political complexities. Bharat Janata Party (BJP) members and their critics alike found themselves in a position of criticism either way. The government faced backlash for not removing GST and again for removing it, highlighting the challenges of managing public expectations.
Expert Analysis and Underlying Concerns
Mr. Palkesh Asawa's insightful analysis sheds light on several key points. He identifies that the move to remove GST may not lead to price reductions for consumers or domestic manufacturers. Instead, it introduces heightened competition from cheaper imports, mostly from countries with less favorable political and trade relations. This analysis reveals the potential negative impact of the decision, underscoring the complexity of fiscal policy.
Government's Role and Public Expectations
The government's failure to communicate its reasoning effectively only added to the confusion and resistance. Even if the decision was thought to be correct, the lack of effective communication resulted in public dissatisfaction. This brings to the fore the importance of transparent and clear communication in fiscal policy decisions.
The government's next course of action involves jacking up import duties to protect domestic manufacturers, particularly small-scale producers, from the influx of cheap imports. This measure reflects the government's attempt to strike a balance between the needs of domestic producers and the competitive market dynamics.
Media Pressure, Controversies, and Political Dynamics
The situation raises questions about the role of media pressure and political considerations. The presence of media "black sheep" (unreliable or biased news sources) and potential external influences cannot be ruled out. It is noteworthy that even as the government highlighted the potential risks of removing GST, there was a significant outcry against the decision, suggesting possible external lobbying efforts.
Experts like Mr. Palkesh Asawa suggest that the government's priority should be the reduction of service taxes, which affect a broader range of consumers. The current 18% GST rate on services is considered too high, particularly when applied to premium payments for insurance policies like life insurance (LIC). The government must urgently address this imbalance to improve public perception and trust.
Conclusion
The decision to exempt sanitary napkins from GST has reignited debates on government transparency, media influence, and fiscal policy effectiveness. While the government's intention was noble, the execution and communication of this decision were critical. Future fiscal policy changes must ensure clarity, transparency, and the necessity for effective communication to align with public expectations and support.