The story so far: Earlier this month, the Supreme Court asked the Centre to respond to a petition that challenges the constitutional validity of the Places of Worship (Special Provisions) Act, 1991. The law was enacted to freeze the status of all places of worship in the country as on August 15, 1947.
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An exception was made to keep the Babri Masjid-Ramjanmabhoomi dispute out of its ambit as the structure was then the subject of litigation. The dispute ended after the court ruled that the land on which the Masjid stood should be handed over to the Hindu community for the construction of a Ram temple. The challenge to the Act questions the legality of the prohibition it imposes on any community laying claim to the places of worship of another.
What does the 1991 Act say?
The Act says that no person shall convert any place of worship of any religious denomination into one of a different denomination or section. It contains a declaration that a place of worship shall continue to be as it was on August 15, 1947.
Significantly, it prohibits any legal proceedings from being instituted regarding the character of a place of worship, and declares that all suits and appeals pending before any court or authority on the cut-off date regarding the conversion of the character of a place of worship shall abate. In other words, all pending cases will come to an end, and no further proceedings can be filed. However, any suit or proceedings relating to any conversion of status that happened after the cut-off date can continue.
The 1991 Act will not apply in some cases. It will not apply to ancient and historical monuments and archaeological sites and remains that are covered by the Ancient Monuments and Archaeological Sites and Remains Act, 1958. It will also not apply to any suit that has been finally settled or disposed of, any dispute that has been settled by the parties before the 1991 Act came into force, or to the conversion of any place that took place by acquiescence.
The Act specifically exempted from its purview the place of worship commonly referred to as Ram Janmabhoomi-Babri Masjid in Ayodhya. It was done to allow the pending litigation to continue as well as to preserve the scope for a negotiated settlement.
Anyone contravening the prohibition on converting the status of a place of worship is liable to be imprisoned for up to three years, and a fine. Those abetting or participating in a criminal conspiracy to commit this offence will also get the same punishment.
What are the grounds of challenge?
The petitioner, argues that the Act takes away the rights of communities such as Hindus, Sikhs, Buddhists and Jains to reclaim the sites of their places of worship through legal proceedings. It amounts to taking away the right of the people to seek justice through the courts and obtain a judicial remedy. He also contends that the cut-off date of August 15, 1947, is arbitrary and irrational.
It is also said the law violates the right to practise and propagate religion, as well as the right to manage and administer places of worship. Further, it goes against the principle of secularism and the state’s duty to preserve and protect religious and cultural heritage.
What has the SC said on the status freeze?
In its final verdict on the Ayodhya dispute, the Supreme Court had observed that the Act “imposes a non-derogable obligation towards enforcing our commitment to secularism”. The court went on to say: “Non-retrogression is a foundational feature of the fundamental constitutional principles, of which secularism is a core component.”
The court described the law as one that preserved secularism by not permitting the status of a place of worship to be altered after Independence. In words of caution against further attempts to change the character of a place of worship, the five-judge Bench said, “Historical wrongs cannot be remedied by the people taking the law in their own hands. In preserving the character of places of public worship, Parliament has mandated in no uncertain terms that history and its wrongs shall not be used as instruments to oppress the present and the future.”
What are the implications of the case?
Civil suits have been filed in a Mathura court seeking the shifting of the 17th-century mosque from the spot that some claim is the birthplace of Lord Krishna. Any order that strikes down or dilutes the 1991 law on the status of places of worship is likely to influence the outcome of such proceedings.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.