Answered: Mains Marathon – UPSC Mains Current Affairs Questions – April 4


Following are the Suggested Answers for Mains Marathon, April 4:


1.In simple terms, What do you understand by General Anti Avoidance Rules or GAAR? Why is tax avoidance such an important area of concern in India? (GS 3)

साधारण शब्दों में, जनरल एंटी अवॉयडेंस नियम या जीएआर से आप क्या समझते हैं? भारत में चिंता का एक महत्वपूर्ण क्षेत्र क्यों है?

The Hindu | IE


GAAR:-

  • GAAR was first proposed in 2010, targeting transactions made specifically to avoid taxes by companies such as Vodafone and Hutchison Essar.
  • It applies to a company in case of abuse of treaty for gaining undue tax benefit.
  • The rules are aimed at improving transparency in tax matters and help curb tax evasion yet recognising genuine players, will be applicable from 2017-18.

 

Why is tax avoidance concern in India?

  • Economic:-
    •      Tax revenue usually grows faster than GDP. But the growth that India witnessed in the recent years is far from satisfactory, given the growth in tax revenue has been just 1.55 percentage points higher than the GDP growth indicating rampant evasion.
  • India has a low tax-to-GDP ratioWhich is low as compared to UK(35%), France(45%) etc
  • Less than 3% of Indians pay income taxes.
  • Amount of money foregone through Tax Incentives is 17.15 lakh crore in last 3 years.
    • The revenue foregone is very high in India eg: the effective tax rate for the corporates after the exemption is just nearly 24%
  • Tax avoidance increases the fiscal deficit further
  • Misutilisation of Double taxation avoidance treaty :
    • Various companies misutilise DTAA of india with other countries for instance with Cyprus, Mauritius where tax rate is very low. The Vodafone case is the example.Government has modified the DTAA treaty with many countries which is good move.
  • Issue of the Base erosion and profit sharing by the countries in which the countries transact with the parent company and show them as the cost to company to avoid the taxes.
  • Issue of the shell companies in the stock markets under the portfolio investment- under this P-notes issuance creates a complicated situation which allows citizens to roundtrip the black money.
  • Companies abuse the international tax treaties specifically to gain undue tax benefits thus eroding the tax base.
  • Misuse of loopholes in tax structure to avoid taxes helps some businesses gain unfair advantage which is a poor reflection of trade practices and negatively affecting ease of doing business.
  • Social :
    • Disturbs social equityand creates increasing gap between rich and poor.
    • Government can focus more on welfare schemes if tax avoidance does not happen.
    • Often the better off sections are more equipped to resort to tax avoidance, this leads to cross-subsidization of the rich.

What can be done?

  • The government needs to widen the tax net by pruning the negative list that keeps certain services out of the purview of service tax and more importantly check evasion.

2. What is Clean power plan?How can it reduce carbon pollution while maintaining energy reliability and affordability? (GS 3)

स्वच्छ ऊर्जा योजना क्या है? यह ऊर्जा विश्वसनीयता और सामर्थ्य को बनाए रखते हुए कार्बन प्रदूषण को कैसे कम कर सकता है?

The Hindu | Link


Clean power plan:-

  • The Clean Power Planis an Obama administration policy aimed at combating anthropogenic climate change (global warming) that was first proposed by the Environmental Protection Agency in June 2014.
  • The final version of the plan aims to reduce carbon dioxide emissions from electrical power generation by 32 percent within twenty-five years relative to 2005 levels.
  • The plan is focused on reducing emissions from coal-burning power plants, as well as increasing the use of renewable energy, and energy conservation.

How can it reduce carbon pollution wholemeal raining energy reliability and affordability:-

  • The plan will require individual states to meet specific standards with respect to reduction of carbon dioxide emissions.
    • States are free to reduce emissions by various means, and must submit emissions reductions plans by September 2016, or, with an extension approval, by September 2018.If a state has not submitted a plan by then, the EPA will impose its own plan on that state.
  • States are to implement their plans by focusing on three building blocks:
    • Increasing the generation efficiency of existing fossil fuel plants.
    • Substituting lower carbon dioxide emitting natural gas generation for coal powered generation.
    • Substituting generation from new zero carbon dioxide emitting renewable sources for fossil fuel powered generation.
  • States may use regionally available low carbon generation sourceswhen substituting for in-state coal generation and coordinate with other states to develop multi-state plans.
  • Clean Power Plan will reduce the pollutants that contribute to smog and soot by 25 percent, and the reduction will lead to net climate and health benefits of an estimated $25 billion to $45 billion per year in 2030.
    • That includes the avoidance of 140,000 to 150,000 asthma attacks among children and 2,700 to 6,600 premature deaths.
  • By switching this coal generation to a cleaner source such as wind power, emissions could be significantly reduced and electric power costs could be reduced
    • This plan will save enough energy to power 30 million homes and save consumers $155 billion from 2020-2030.
    • The plan would create 30 percent more renewable energy generation in 2030 and help to lower the costs of renewable energy.
  • Just one to five percent of the revenue generated from a moderate carbon price would offset any detriment to coal miner communities.
  • The Clean Power Plan provides tools to reduce the burden placed on minority, low-income, and indigenous communities from pollution and ensure that these communities are not disproportionately affected by the rule.
  • Since the plan was established in 2014, there have been various global efforts made to decrease toxic particulate matter emissions by other developed nations.
  • The ParisAgreement was agreed upon in  entered into force in November 2016.
    • The Paris Agreement aims to combat global climate change by keeping a global temperature rise this century well below 2 degrees Celsius and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.
  • Clean Power Plan is merely one of the ways that will help it fulfill an existing pledge to reduce overall greenhouse gas emissions by 26-28% by 2025 from 2005 levels.
  • The Plan will ensure that 870 million tonnes of carbon emissions are avoided by 2030.
  • It holds an important lesson for countries like India, which are much more dependent on coal than the US for producing electricity.
  • The Plan is trying to ensure that coal  becomes and remains clean for the time that it is around. It is a message that needs to reverberate across other coal-dependent countries, mainly India and China, who have some of the dirtiest coal power plants.

Therefore the need for ‘cleaning’ coal is therefore obvious  and of utmost importance in meeting India’s climate objectives.India also needs to develop cost-effective technologies for carbon capture and storage solutions, which attempt to tap emissions and store them away, in rocks under the earth’s surface for example, so they are prevented from being released in the atmosphere. This is a temporary solution, but something the world is looking at with great interest.India’s noises on climate strategy are heavily dominated by plans to upscale renewable energy, and massive afforestation.


3.Discuss the need for providing digital accessibility to disabled people.Also, examine the important features of the Rights of Persons with Disabilities Act, 2016. (GS 2)

विकलांग लोगों को डिजिटल पहुंच प्रदान करने की आवश्यकता पर विचार करें। इसके अलावा, विकलांग व्यक्तियों के अधिकार अधिनियम एक्ट, 2016 के महत्वपूर्ण विशेषताओं की जांच करें।

Hindu


Background:-

  • Digital accessibility means that people with disabilities can perceive, understand, navigate, and interact with the Web, and that they can contribute to the Web.
  • Digital accessibility also benefits others, including older people with changing abilities due to aging.

Need for providing digital accessibility to disabled people:-

  • Accessibility is critical for enabling them togain access for equal opportunity and live independently and participate fully in all aspects of life in an inclusive society.
  • Technology has been a game changer for people with disabilities.
  • Screen reading softwares have enabled blind people to use computers, dictation softwares have helped not just the blind but also people with upper limb impairments. .
  • Accessible technology is the linchpin around which other rights of people with disabilities revolve. It is the first step towards accessing education, employment and other opportunities.
  • Accessibility to information through IT is only one of the various facets of accessible information.
  • Poor accessibility due to lack of focussed information and political will has led to social exclusion of people with disabilities, exacerbating the negative impact of the existing digital divide.
  • Accessibility therefore forms the common thread weaving together the Accessible India Campaign, the Rights of Persons with Disabilities Act, the Smart Cities Mission and the Digital India campaign to achieve the combined goal of creating an inclusive society that will allow for a better quality of life for all citizens, including persons with disabilities.
  • Exclusion of persons with disabilities from education, employment and participation on account of a hostile infrastructure and inaccessible technology has huge economic implications. UN agencies put this cost at around 7% of national GDP.
  • On the other hand, accessible services and business premises can broaden the customer base, increasing turnover and positively impacting the financial health and social brand of the company.
  • Recent research pegged the market size of different product categories needed by persons with disabilities in India at a whopping Rs. 4,500 crore.

 

Positives of the bill:-

  • The Rights of Persons with Disabilities (RPD) Act, which was passed in 2016, seeks to give effect to the rights and obligations enshrined in the United Nations Convention on the Rights of Persons with disabilities, which India signed and ratified nearly a decade ago.
  • The Act has several important and noteworthy aspects which will have a great impact on inclusion for Indians with disabilities.
  • The new legislationrecognises that accessibility is critical for inclusion and that it is a cross-sectoral issue to be implemented by different stakeholders across different government departments and ministries and agencies.
  • The new Act has expanded the ambit of conditions it recognizes to 19 conditions, as opposed to the 7 disabilities that were recognized under the 1995 legislation.
    • Further the Bill contains a provision allowing the Central Government to notify any other additional condition as a disability.
  • A really important development under this Act is that it requires mandatory conformance to accessibility standardsand recognises that reasonable accommodation and universal design are critical for facilitating access in an equitable manner and creating an accessible framework for India going forward.
  • The new Act makes it amply clear that accessibility is a must and includes the private sector, private service providers and private establishments within its ambit for compliance with the Act.
    • The Act also understands public services and public buildings as those which are used by the public at large, including those services and buildings which belong to private sector and not as merely those which are government owned.
  • Another important development is the fact that the Act clearlymandates that accessibility includes both environmental and information technology accessibility (ICT accessibility)
  • The Act makes provision for the earmarking of special courts for speedy trial of offences under the Act at district level.These are to be done with the permission of the Chief Justice of the High Court.
  • The recently passed Rights of Persons with Disabilities Act, 2016 mandates adherence to standards of accessibility for physical environment, transportation, information and communications, including appropriate technologies and systems, and other facilities and services provided to the public in urban and rural areas.
    • The Bill confers several rights and entitlements to disabled persons. These include disabled friendly access to all public buildings, hospitals, modes of transport, polling stations, etc.
  • The Act also mandates incorporation of Universal Design principles while designing new infrastructure, electronic and digital media, consumer goods and services.
  • Most importantly, the Act sets timelines to ensure implementationof the above and punitive action in the event of non-compliance.
  • Persons with at least 40% of a disability are entitled to certain benefitssuch as reservations in education and employment, preference in government schemes, etc.
  • In case of mentally ill persons, district courts may award two types of guardianship.  A limited guardian takes decisions jointly with the mentally ill person.  A plenary guardian takes decisions on behalf of the mentally ill person, without consulting him.
  • Violation of any provision of the Act is punishable with imprisonment up to six months, and/or fine of Rs 10,000.  Subsequent violations carry a higher penalty.
  • The Bill will protect approximately 2.68 crore people with disabilities in the country.

Issues:-

  • The Bill is being brought in to fulfill obligations under an international treaty.  The question is whether it is appropriate for Parliament to impose legal and financial obligations on states and municipalities with regard to disability, which is a State List subject.
  • The Financial Memorandum does not provide any estimate of the financial resources required to meet obligations under the Bill.
  • The Bill states that violation of any provision in the Act will attract imprisonment and/or fine.  Given the widespread obligations (such as making all polling booths accessible to the disabled), many acts of omission or commission could be interpreted as criminal offences.
  • In “extraordinary situations” district courts may appoint plenary guardians for mentally ill persons.  The Bill does not lay down principles for such determination, in a consistent manner, across various courts.  The Bill overrides the Mental Health Act, 1987 but the safeguards against misuse of powers by guardians are lower.
  • The Bill is inconsistent with other laws in some cases.  These include conditions for termination of pregnancy and the minimum penalty for outraging the modesty of a woman.
  • According to studies carried out by the research institute PRS Legislative, the ‘Penalty for outraging the modesty of a woman’ clause (Clause 105b) in the bill has ended up reducing the minimum penalty for offenders against women with disabilities. The minimum sentence is six months, as opposed to existing laws in the Indian Penal Code that give offenders a minimum sentence of one year. Shockingly, this was not amended in the new version of the Bill.
  • Although Clause 3 acknowledges that ‘special measures’ should be taken to protect the rights of women and children with disabilities, last year women’s rights activists campaigned for the incorporation of a separate sub section that would address the needs of women with disabilities and follow the guidelines set out by the UN Convention on the Rights of Persons with Disabilities.This is neglected.
  • The practices that keep impacting women – like the institutionalization of people with disabilities are not adequately dealt with under the Bill. 
  • The Bill is set to regulate establishments and set up guardianship for people with disabilities, but really it gives no credence to how women with disabilities can further exercise their legal capacity and live independently within the community.

What can be done?

  • As India catapults towards a cashless and digital economy and as human interface between service providers and end users gives way to digital, it becomes imperative to ensure accessibility for inclusion.
  • The need is for representation of persons with disabilities in all ministries and key missions, commissions and committees to advise and ensure inclusion in all policies, programmes and developments.
  • Also important is the synergy between various arms of the government. The Smart Cities Mission focusses on comprehensive development leading to the convergence of other ongoing government programmes such as Make In India, Digital India, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Pradhan Mantri Awas Yojana, National Heritage City Development and Augmentation Yojana (HRIDAY), etc.
  • Incorporation of accessibility principles across all new developments will also complement the Accessible India Campaign, the flagship campaign launched by the Prime Minister on World Disability Day which aims at achieving universal accessibility for all citizens and creating an enabling and barrier-free environment

 

Hence, the Act recognises that accessibility, both digital and environmental is an overarching requirement for persons with disabilities to be able to enjoy their rights and freedoms on par with others.


 

 


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