Background
The Supreme Court of India has sought the most recent position of the Union government on a batch of petitions challenging the Constitution (Scheduled Castes) Order of 1950, which allows only members of Hindu, Sikh and Buddhist religions to be recognised as SCs.
Who all are included in the Constitution Order of 1950?
- When enacted, the Constitution (Scheduled Castes) Order of 1950, initially provided for recognising only Hindus as SCs, to address the social disability arising out of the practice of untouchability.
- The Order was amended in 1956 to include Dalits who had converted to Sikhism and once more in 1990 to include Dalits who had converted to Buddhism.
- Both amendments were aided by the reports of the Kaka Kalelkar Commission in 1955 and the High Powered Panel (HPP) on Minorities, Scheduled Castes and Scheduled Tribes in 1983 respectively.
- On the other hand, the Union government in 2019 rejected the possibility of including Dalit Christians as members of SCs, rooting the exclusion on an Imperial Order of 1936 of the then colonial government, which had first classified a list of the Depressed Classes and specifically excluded “Indian Christians” from it.
Why are Dalit Christians excluded?
- Responding to the Ministry of Home Affairs’s (MHA) 1978 request for an opinion on the inclusion of Dalit Buddhists and Christians, the RGI had cautioned the government that SC status is meant for communities suffering from social disabilities arising out of the practice of untouchability, which it noted was prevalent in Hindu and Sikh communities.
- It also noted that such a move would significantly swell the population of SCs across the country. However, the amendment to include Buddhist converts as SCs was passed in 1990.
- In 2001, when the RGI again opined against including Dalit Christians and Muslims as SCs, it referred to its 1978 note and added that like Dalit Buddhists, Dalits who converted to Islam or Christianity belonged to different sets of caste groups and not just one, as a result of which they cannot be categorised as a “single ethnic group”, which is required by Clause (2) of Article 341 for inclusion.
- Moreover, the RGI opined that since the practice of “untouchability” was a feature of Hindu religion and its branches, allowing the inclusion of Dalit Muslims and Dalit Christians as SCs could result in being “misunderstood internationally” as India trying to “impose its caste system” upon Christians and Muslims.
- The 2001 note also stated that Christians and Muslims of Dalit origin had lost their caste identity by way of their conversion and that in their new religious community, the practice of untouchability is not prevalent.
Is there a case for inclusion?
- The petitions arguing for inclusion have cited several independent Commission reports that have documented the existence of caste and caste inequalities among Indian Christians and Indian Muslims, noting that even after conversion, members who were originally from SCs continued to experience the same social disabilities.
- This was substantiated in the First Backward Classes Commission’s report in 1953, the Report of the Committee on Untouchability Economic and Educational Development Of the Scheduled Castes in 1969, the HPP report on SCs, STs, and Minorities in 1983, the Mandal Commission Report, the report of the Prime Minister’s High-Level Committee formed in 2006, a 2008 study conducted by the National Commission for Minorities, the Ranganath Misra Commission Report and several other studies.
- In addition to this, the petitions have argued against the proposition that caste identity is lost upon conversion, noting that even in Sikhism and Buddhism, casteism is not present and yet they have been included as SCs.
- Furthermore, the above-mentioned reports argue that caste-based discrimination continues even after conversion, hence entitling these communities to SC status. However, the Union government refuses to accept the reports of the Commissions on the basis that these reports do not have enough empirical evidence to support their claims.
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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.