Letters to the Editor of May 21, 2021


This refers to the report “Tariff relief for Covid mixed up in red tape” (May 20). The exemption was granted as an ad hoc exemption and not as a blanket exemption, as it is intended only for this shipment and not for anyone who may import as a commercial proposition.

Second, such exemptions are only granted to charities that offer them free and are intended for charitable use. Third, the end-use certificate that must be produced is produced only afterwards, usually within six months. He is not delaying shipments at this time.

The comment that the importer should spend more time in customs than with the patients is not correct.

There has been a standard procedure for more than half a century known to clearing agents. A clearing agent should have been appointed.

With regard to the general exemption, the Minister of Finance rejected the request. She gave the reasons publicly. This issue will likely be discussed at the next GST Council meeting.

Retired member of CBEC

This refers to the editorial “Creeping Threat” (May 21). As the second wave of the pandemic poses serious economic challenges, controlling the prices of essential commodities is vital to help the recovery. Rising world prices for raw materials and crude oil have a direct impact on the cost of production in the manufacturing sector.

The use of indigenous raw materials is crucial to contain domestic prices. Rising transportation costs due to rising fuel prices are also pushing up inflation.

As the outbreak of the pandemic destroys lives as well as livelihoods, measures to stimulate growth are urgently needed, in particular the promotion of private and public investment to create more jobs. Increasing the supply of cheaper credit and preventing performing assets in the banking system from turning into bad assets are also essential for controlling inflation and promoting investment. Reducing monetary policy rates is essential to motivate investment, but at the same time a constant watch over prices must be maintained. The government and the banking regulator must implement measures to stimulate growth in these difficult times.

Changanacherry

Regarding the “ RBI board granting a surplus transfer of 99122 cr to the government, ” the RBI made the transfer for a 9-month period from July 2020 to March 2021, even as it aims to maintain the emergency risk buffer at 5.50%. In particular, the RBI decided last year to extend its accounting year from the traditional July-June to April-March.

It may be recalled that the RBI transferred a meager surplus of ₹ 57,128 crore to the central government last year, the lowest in the past seven years. In contrast, an unprecedented ₹ 1,23414 crore was transferred to the central government in 2019.

Since the RBI is the central government banker, a substantial transfer of excess funds in accordance with section 47 of the RBI Act of 1934 may prove useful in meeting its various financial obligations (including the massive outlays required to deal with Covid) and minimize the budget deficit relative to meeting its GDP target.

New Delhi

On ‘the warehousing industry needs a makeover’ (May 21), given excess food grain stocks and government commitments to food security, especially in these times of pandemic, the storage of food grains is of the highest priority.

To reduce waste, modern warehouses must be developed with qualified personnel. Managers need to have in-depth knowledge of warehousing and the value of storage. The government should set up special warehouse development vehicles and personnel skills development programs for orderly growth of the warehousing industry.

SIVAKASI


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