Friday, September 01, 2006

In a report last week the Acountant General ( CAG ) said that the money collected from the 3% Education Cess is not being allocated to right recipients and is being misused which is what I always suspected would happen. Now we hear that the govt. is levying an AIDS cess on air tickets. The taxes on air tickets are already at obscene levels and in some cases the tax is higher than the value of the ticket. The low cost airlines are making losses and according to Boeing this is not sustainable. So what happens if the airlines collapse? Who cares. According to the sclerosed politicians air travel is a luxury for the upper classes and therefore not a vote winner. They do not see that for the first time even middle classes are able to afford air travel and will suffer most. So what happens to all the money that is looted and will be be looted in the future? The easiest and perhaps the only asset in which to hide colossal amounts of loot is the housing and building sector. No wonder housing prices are becoming astronomical and the price of land is Rs. 30000 per sq. yard even in the dirtiest of little towns. Once the money is invested in land then one can borrow white money from banks and invest in the share market which explains why the Sensex is touching 12000 from a low of 2900 about a year and half ago. Meanwhile affordable housing is beyond the reach of ordinary people. So what do we do? The onle thing is to beat your head against the wall in frustration at our helplessness. Is it any wonder that people are joining naxals and other separatist groups? Power comes from thae barrel of a gun, as Mao said a long while ago.

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