CONSUMER RIGHTS
Tax pause

Consumers expect a budget that would provide better services and safeguards, observes Pushpa Girimaji

WILL Chidambaram do a repeat of his earlier dream budget or will he administer a bitter pill? Consumers today are quite pragmatic and I am sure they expect a tough budget, particularly the middle class, especially in view of the recent tsunami disaster which requires huge investment in relief and reconstruction. One does not mind paying for the rehabilitation, so long as there is transparency and accountability in the utilisation of the funds. For this one expects, from the budget, a mechanism that eliminates corruption in the delivery of these services.

With the drop in the direct tax collections (as compared to 30.9 per cent in December 2003, the growth in direct tax collections in December 2004 was only 23.7 per cent), there is not likely to be any relief for the consumer.

The government is likely to impose service tax on a number of services. As of now, around 70 services are being taxed, but 70 per cent of the service tax revenue is said to come from 10 services. It will be unfortunate if the government increases the price of LPG any further because today even the poorer classes are using LPG. A steep hike in its price will make it out of their reach.

Another essential product that is getting out of reach of not just the poor, but the middle class too, is medicines. In the product patent regime, prices of many new life-saving drugs may well skyrocket. The Finance Minister has to look at this aspect in his budget, besides health care, particularly in rural areas and a viable, affordable and effective health insurance for all, particularly those in the lower income groups.

Similarly, consumers have a right to clean and potable water, healthy, unadulterated food. And the budget should provide for these essential facilities, particularly in the rural areas.

While there are more than two dozen laws meant to protect consumers yet due to the absence of adequate infrastructure facilities such as state-of the art laboratories and trained personnel to enforce the laws, most of them are either poorly enforced or hardly enforced. There is a need for budget allocation for setting up adequate number of testing laboratories and provide all necessary infrastructure to force the better compliance of consumer protection laws.

Consumers also want better infrastructure. Power supply continues to be erratic despite consumers, especially those in the urban areas, paying heavily. Good roads in rural areas are almost non-existent.

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