|Petrol Prices in Delhi||% of sale price|
|Price without duties and taxes||43|
When the vast sections of our country are seriously impacted by the ruthless price rise and its consequences, our government in its recent budget has not shown any kind of sympathy or concern to their plight. This whole budget has been oriented towards facilitating further maximizing profits for the capitalists.
Our Party's statement published on the CGPI's website, comprehensively points this out backed by facts and analysis.
First part of the statement brings out the broader and full picture of the budget, how the country's income is distributed in this system, how the capitalists without making any contribution to the value creation, are siphoning out the maximum value created by working people. Party's analysis is very enlightening and revealing.
Subsequently it reiterates the demand to put moratorium on the debt service payments to financial institutions. Thus the statement not only denounces how the funds are diverted to the rich and poor are denied their needs, it also clearly shows how to generate the funds for providing for the people's welfare. This is very important and crucial.
Capitalist pay (if and when they pay) some money as corporate income tax out of the loot (profits and interest) they have taken out from the workers & peasants, whereas workers pay taxes from their wages/salaries which is for their maintenance and survival. There is a categorical difference between the two. This also confirms that ALL the taxes (including the corporate income tax) are ultimately paid from the value created by the workers and peasants only.
Statement mentions that capitalist taxes to the extent of 0.7 Lac crores are waived by the government. Our government provides huge tax concessions and waivers to the big capitalists in various forms such as tax holidays, SEZ, STPI and various other exemptions. More the capitalists are richer, bigger and earn higher profit margins, they get higher and higher or full tax exemptions in this system. What is more shocking is that government is taking various draconian steps and uses technology to bring more and more people who earn survival or below survival level wages under Tax net! And authorities look into each and every paisa people may earn and see how to tax that and work out mechanisms to extract that. And on the other side, the billions which the World's richest capitalists claim as their “property income” are given tax holidays and exemptions!
For example, those who work in IT and ITES industries slog for 12 to 14 hours a day and in most cases 6 days a week and they produce billions of Dollars, Euros and Pounds for the rich capitalists. And these working people who produce this surplus are taxed to the core - including taxing food, transport, coffee and tea, etc. provided by the capitalists. Whereas the very capitalists who have amassed the wealth from the hard labour of working people are given tax exemptions! Logic is totally distorted and it is reverse of what it should be! Manmohan Singh, Pranab Mukherji and others of the ruling establishment do not feel ashamed of their distorted logic in serving the capitalists.
Statement has mentioned the petroleum price increase and its impact on the people. It says, "the budget announced a reduction in petroleum subsidy, which will contribute to further rise in commodity prices through higher transportation cost, adding to the burden on the working class". This fully tallies with our experience. We also know that Subsidy is a term used intentionally by the government to mislead the people, to create the impression that government is subsidizing the prices for the people’s sake! Taking the petrol prices in Delhi as an example, facts are as follows :
So, why cannot government simultaneously withdraw the subsidy as well as all the taxes on the petrol? If they do so, the prices of petrol for example will actually fall down at least by 47%! So when the government talks about subsidies it is a fake and blatant lie they are propagating.
After presenting the budget, Pranab Mukherji has told the press "Yes, there will be price rise and inflation following this budget, but that will be alright after 6 months". He confesses that the government not only has done nothing to reduce the prices of food and other essential items, but this budget will also lead to higher prices and terrible conditions for the common man. By saying that it will be alright in 6 months, he is arrogantly meaning that people will get used to this in 6 months and there is no need to worry or rectify this situation!
While vast majority of our people including the middle class are terribly impacted by price rise of food and essential items, Manmohan Singh and Pranab Mukherji have blatantly declared that they do not care an iota, but have done everything to further enhance the profits of the rich capitalists. Thus they have posed a challenge to the vast majority of our people. Are the working people going to tolerate and submit to this blatant injustice and attack, or unite and rebel against this, and organize to put an end to these criminals and their barbaric system? Party's statement very clearly brings out that in today's political and governance system, people are totally powerless and mute sufferers of the inhuman and unjust plunder being carried out by the rich capitalists and their rule.
Party's Statement points out that "We must fight with the aim of abolishing taxes on wage and salary incomes, and reducing to zero all indirect taxes on essential consumption goods and services... On an immediate basis, as long as the means of production remain capitalist property, we must fight for the principle that only surplus value must be taxed, which means only the incomes of capitalists must be taxed and not those of workers and peasants". This conclusion and direction Party has set is really wonderful, economically correct and politically powerful. This conclusion will be highly welcomed by all the working people and middle strata of our country and will soon become an agenda of their struggle.
With Best Regards,