17 September 2024

MAINS DAILY QUESTIONS & MODEL ANSWERS

Q1. Dalai Lama argues that achieving inner peace is a prerequisite for attaining peace in the external world. Discuss.

GS IV – Ethics related issues

Introduction:

• The provided quotation underscores the significance of cultivating a state of inner purity and tranquilly as a means to foster external peace in the world. In this context, peace encompasses not just the absence of violence and animosity, but also encompasses the holistic prosperity of both the material and spiritual dimensions within society and the global community.
• The cultivation of inner peace has the potential to propagate a harmonious environment, frequently yielding positive outcomes in the external realm. It is imperative to reflect upon the examples set by Mahatma Gandhi and Gautam Buddha, both of whom exemplified inner calm. Furthermore, they imparted the principles of non-violence, peace, and fraternity to the global community, persistently serving as a guiding force in promoting peaceful methodologies.

The Significance of Inner Peace in Facilitating the Attainment of Peace in the External World:

• The cultivation of inner peace fosters a disposition characterised by love, empathy, and compassion towards one’s fellow human beings. This approach has the potential to address instances of violence based on nationality, ethnicity, and colour that are occurring in different regions globally.
• The principles of inner peace serve as a moral compass for human behaviour, grounded in logical thinking, rationality, and a scientific mindset. Therefore, facilitating global progress towards cultural cohesion and religious inclusivity.
• Political elites characterised by a disposition towards peace and a rational approach will undoubtedly refrain from engaging in narrow-minded political agendas and territorial aggressiveness inside member nations. For example, The attainment of inner peace among the leadership of Russia and Ukraine holds the potential to effectively resolve inhumane problems via the utilisation of dialogue and diplomatic channels.
• The establishment of harmony among masculine individuals within our society has the potential to ignite a sense of affection and concern for their respective spouses, mothers, and sisters. Therefore, the establishment of peace in the external world can be significantly advanced by addressing the issues of domestic violence, sexual assault in public spaces, and patriarchal tyranny.
• Moreover, the aforementioned statement succinctly encapsulates the concept at hand.
• The presence of justice within an individual’s heart is indicative of the presence of beauty within their character. The presence of aesthetic qualities in an individual’s character contributes to a sense of balance and unity within the household. The presence of harmony within the household contributes to the establishment of order within the nation. The presence of order within a nation contributes to the establishment of peace on a global scale.

Q2. Evaluate the efficacy of diverse governmental endeavours aimed at restructuring the direct and indirect taxes frameworks in India. Furthermore, it is imperative to delineate the several challenges that continue to afflict the taxation system in India.

GS III – Indian Economy

Introduction:

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• In recent years, both the Central and State Governments have implemented a range of legislative reforms aimed at enhancing predictability, fairness, and automation. India’s remarkable ascent in the World Bank’s Ease of Doing Business ranking in 2020 is a consequence of its progress, as it advanced by 79 places from its previous position of 142nd in 2014 to 63rd in 2019.

The Impact of Reforms:

• The Goods and Services Tax (GST) is an indirect tax implemented in India on July 1, 2017. It is a destination-based tax that is levied on the sale of goods and services. GST was introduced as a comprehensive indirect tax system for the entire nation.

Accomplishments:

• The unification (harmonisation) of indirect taxes has resulted in a decrease in compliance costs.
• The mitigation of cascading effects of taxes and the prevention of tax evasion can be achieved by the implementation of a comprehensive IT-based monitoring system.
• Enhanced revenue collection. In September 2017, the collection of Goods and Services Tax (GST) amounted to 92,150 crore rupees, whereas in September 2022, the GST revenue increased to 1,47,686 crore rupees.

The 15th Finance Commission has identified several challenges pertaining to the Goods and Services Tax (GST), which are as follows:

• There is a discrepancy between the actual Goods and Services Tax (GST) collections and the advance estimates.
• The presence of multiple tax slabs and elevated tax rates.
• The erosion of fiscal federalism is seen in the challenges surrounding the Goods and Services Tax (GST) compensation provided to states.
• In addition to the aforementioned efforts, there are several other initiatives that have been implemented.
• The reduction in customs duties was observed in 1990, with non-agricultural products experiencing a decrease from around 128%. At now, the prevailing average rate of customs charges is from 11% to 12%.
• The ATITHI mobile application is designed to facilitate the submission of customs information by foreign travellers.

Direct tax refers to a type of tax that is imposed directly on individuals or entities by the government. This tax is levied on:

• The Faceless Tax Assessment Scheme was implemented in 2020 with the primary aim of enhancing the efficiency and efficacy of tax administration, reducing the need for in-person interactions, and enhancing accountability.

Accomplishments:

• There has been a decrease in instances of tax terrorism that were prominent during the era of Inspector-Licensing Raj.
• This approach effectively mitigates the influence of personal biases and minimises the potential for subjective judgement.

One of the primary issues that need to be addressed in this study are the challenges that are:

• The e-portal server is plagued by persistent and recurring technical difficulties, as well as challenges pertaining to data uploading and various other concerns.
• Another concern that arises is the limited amount of time provided to taxpayers to reply to notices during the assessment process.
• The Vivad se Vishwas Scheme was implemented with the objective of mitigating the backlog of income tax disputes, facilitating the timely collection of money for the government, and providing advantages to the concerned parties.

Accomplishments:

• A significant decrease in the number of pending cases was observed, with a total of 132,353 cases being resolved as of August 2021.
• The tax amount received by the government until August 2021, in the form of payments towards contested taxes, amounted to Rs 53,684 crore.
• One of the primary issues that need to be addressed is the various challenges that arise in this
• Both honest and dishonest taxpayers are afforded equal treatment. Even individuals who engage in fraudulent tax practises are now able to resolve their tax obligations without incurring any further charges in the form of interest or penalties.

Additional Initiatives:

• The reduction of Minimum Alternate Tax (MAT) has resulted in a decrease from 18.5% to 15%.
• The Dividend Distribution Tax (DDT) was eliminated by the Finance Act of 2020.
• The taxation system in India is now facing several challenges.
• The Indian government’s white paper on black money in 2012 highlights the presence of a parallel economy that is equivalent in size to the Indian GDP.
• The tax-to-GDP ratio reached its peak at 11.7% for the fiscal year 2021-22. The aforementioned statistic exhibits a relatively diminished value in relation to comparable developing economies such as Brazil, which recorded a rate of 31.6% in the year 2020.
• The absence of taxation on agricultural revenue in India is noteworthy, considering the significant role that agriculture plays as the primary sector of the country’s economy.
• The regressive nature of indirect taxes is further accentuated by the existing Goods and Services Tax (GST) structure, wherein biscuits are subjected to an 18% tax rate, while gold is taxed at a mere 3%.
• Tax Avoidance: The income-tax department’s December 2017 report reveals that a mere 1.6% of the Indian population fulfils their obligation to pay income tax.
• Previous tax reforms were plagued by a rise in bureaucratic inefficiencies and administrative obstacles, leading to the emergence of a convoluted tax structure. In recent years, there has been a notable effort by both the national and state governments to implement a range of initiatives, policy reforms, and automation measures aimed at simplifying and enhancing accessibility to the taxes system.