WEDNESDAY, APRIL 24, 2024
Alexandre Moniz Barbosa
In the midst of the COVID-19 pandemic, as the economy takes a massive slide to unimaginable depths, the government appears to be little concerned about how industry is managing with the crises that have been hitting them since March this year. It’ll soon be six months since the first lockdown – half a year during which the earnings for some have been zero, and for others less that half of the average. Bsinesses have been shut down, employees rendered jobless and this has happened across the country. Just last week, Union Finance Minister Nirmala Sitharaman said that the Centre was unable to pay the GST dues to the State as the pandemic – she described it as an act of God – had affected the economy. The GDP has dropped by -23 per cent in the first quarter, the highest ever, and the outlook for the second quarter is not glowing. Under these circumstances one would expect the government to be more sensitive to the travails of industry, but has it been?
Industry that has followed all the guidelines of the government is now feeling let down by the State government that reneged on the promise that the rate of raw water supplied to industry will be rectified. As per industry captians, this was a promise made by then Chief Minister, the late Manohar Parrikar, but it remained a promise and was never formalised in the last three years, despite they having reminded the government of the issue and even arrived at an acceptable rate. Now, Verna Industries Association has received a notice to pay outstanding raw water arrears amounting to Rs 3.48 crore within ten days. Industry has termed this a ‘breach of promise’ and said that in the current pandemic times when they are in a ‘very bad phase’, the notice has completely jolted them.
In April, during the lockdown the Electricity Department had raised its routine electricity bills towards all factories with the fixed charges, electricity duty etc and asked them to pay on or before April 15. Goa State Industries Association (GSIA) along with Confederation of Indian Industries, Goa Chapter, Goa Chambers of Commerce and Industries and Verna Industries Association made a joint representation to the Chief Minister on the issue stating they had not anticipated the lockdown and wanted the extra additional charges to be waived off as a majority of the factories had closed due to lockdown. They had admitted they were willing to pay the charges on power consumed. A suggestion was that for atleast three months after the lockdown there should be a relaxation so that industry could regain its footing or it could lead to many small units shutting down.
If industry is struggling, the tourism sector is facing an even deeper crisis. But this has not stopped the government from releasing the draft Goa Registration of Tourist Trade (Amendment) Rules 2020, under which the registration fees for the tourism industy have been hiked. This is hardly the best of times to raise registration fees and it has led to the Goa Chapter of the Travel Association of India (TAI) to demand that the draft be immediately revokedas for it is ‘ill- timed and repugnant’. They have claimed to have received no assistance from the government during the crisis, having faced huge set backs and agains this background, the government making increasing the fees will only add to their misery. Given that the tourism industry has seen no business since March this year, their points certainly do appear valid.
In the current times, one would have expected the government to be far more understanding with industry and supportive to it so that it can get back on track and start earning for itself and for the State, but from the above examples it appears that this is not happening. The government, instead, appears to be looking at means to increase its revenue by taxing industry even more. It is accepted that for the government its revenue too has dropped considerably in the last few months, but is burdening industry the method by which to fill the coffers? At the current moment, there are many industries and many units in the tourism sector that are barely surviving, it is not fair to weigh them down with outstanding bills, especially of charges that had been promised to be reduced, and to increase registration fees in the tourism sector.
Frankly, there is no requirement to make the current times any more dfficult than they already are. It is not just industry that is feeling the brunt, but as the economy takes a hit so does everybody else in the State. If industry is to pay more, than business will further suffer and that, in the present circumstances, is just not advisable. Industry had already been troubled with the electricity bills immediately after the lockdown and now the raw water dues. It does appear as if the authorities are grabbing at whatever straw they can to increase their revenue, not concerned about the effect this will have on industry. A little more concern is all that is required, and support to industry to keep it afloat and not drive a blow that will sink it faster.
It is obvious that industry has been disgruntled for some time. Here is what the GCCI chairman said at the June AGM of the chamber. “Considering the financial health of the state we had not asked for any grants or monetary benefits which will have cash outflow for the Government. However not considering our repeated requests for relief in various Government charges even for the Lockdown period was very disappointing and disheartening,” Manoj Caculo said. Further, after listing the measures of the government he had added, “These measures amount to just short term deferment of liabilities. Industry has suffered and it was hoping that the government would provide actual financial relief and to that extent, we feel disappointed.”
The economic sailboat has been buffeted by the winds of uncertainity brought by the lockdowns. The State’s revenue collection has dipped and the signs of a revival are not yet in sight. It’s a matter of concern and it’s prodent to not rock the boat any further.
Alexandre Moniz Barbosa is Editor, Herald. He tweets at @monizbarbosa
