Post Pay and Tax Revision Thoughts

Yesterday, I received my new pay slip and finally I did my own math. Yes, the raise was minimal. I am sure it’s not even going to cover up the inflationary gap. But all thank goes to my house owner. At the moment, there is no sign of rent revision from his side. Elsewhere, some of my friends have already received a rent revision notice.

In places like Thimphu, Phuentsholing and Paro, the generous house rent allowance accorded by our government will surely not guarantee a decent apartment. Contrary to the findings of Economic affairs Minister, the prices of commodities, both local and imported have REALLY gone up. 

Disappointingly, the very politicians who came to power on populist agenda are turning out to be nothing but biggest cheats (or we failing to understand their broader concern) Their skewed pay revision candy just took one year to create a painful cavity in molars of public servants. Their confused electric car vision, their un-promised self serving pay package and their wanton allowance system did best to disclose the real devil in them. 

Now in the middle of pay revision math,  people are made to go busy doing the taxation math. Green Tax, Car Tax and mobile voucher taxes are surely going to make the voters angry. In brief, these are unwarranted tax on communication. As understood by everyone, we can call it a proletariat tax

The Government’s initiative to inculcate tax-paying culture is highly appreciated. It will instill sense of ownership among the general public over public goods. Through it, people will get to know the real meaning and value of free services. However taxing on communication sector is a serious business. It may require a lot of rethinking. 

Especially in business world, communication has become the single most important tool for the survival. With recent proliferation of mobile telecommunication systems, it has brought in immense benefits for farmers of rural Bhutan too. Similarly, most of the Government offices today use no less communication for public service delivery. Therefore, taxing on it is simply unthinkable. 

Taxation is a very sensitive issue. Unless politicians see a clear cut political gain, many wouldn’t even talk about it. This is according to worldwide phenomenon. Ironically, here our politicians took just one sitting to introduce a range of tax bills. As politicians, they seem to have taken the biggest risk of their life. With the kind public outrage, many may perish with just one term. 

To conclude this post, let us look at the main points once again. 

1. Pay revision was not up to the expectations.

2. Pay revision was discriminatory. 

3. MPs had their self serving pay packages. 

4. Politicians have introduced peasant taxes. 

5. Prices have really gone up. 

But here are the silver linings. 

1. Import duty for most of the medical, surgical and dental equipments are made zero.

2. Import duty for most of the pharmaceutical drugs, vaccines and other drugs are made zero too. Hence we can expect cheaper medical treatment. 

3. Import duty for Spare parts for aircraft is made zero. Hence Travelling by air will be cheaper. So travel by air and not by car. 

4. Did I miss something?

5. Let me Know.

Passing Through the Dark Economic Days?

One year ago, I wrote a post titled "eventful" July 2013. I chose to call it a "memorable month". With new set of politicians in power that promised "service with humility" and "power to the people", I had reason to harbor lots of positive expectations. Their alluring 100 day manifesto, I thought was the promise of the century. The much needed "change" it seemed was in the offing. Especially to an impoverished service man like me, they showed the pay revision candy and I acted like a child. In brief, I was actually dying to see the July 2014.

Now here I am, nearing to end my most awaited July 2014. The flames of much talked about pay revision has subsided. Back then National Council members fought against the pay hike. The reasons are still hard to understand, but it could be either of them; 1. the marginal hike accorded for them or 2. Their real Buddha nature. Love for the Nation? Well. I doubt! And interestingly and paradoxically, back in Korea I was skipping my meals to adjust my budget. What an irony of life!

Anyways, as per maths done by some of my colleagues, I was told that I would be getting an additional sum of Nu. +4000 monthly. Had it not been for the double digit market inflation, I think its a lot of money. Home Minister has started replacing the Finance Minster. It seems Finance Minister have no words left to utter. Recently Trade Minister has shown his deepest possible concern. He was sighted in the town doing a day long market research. His conclusions are astounding "There is no inflation in the market" was his finding. Somewhere, his results must have left academicians scratching their skull in awe.

"There is no inflation in the market". Hence our Politicians thinks taxing people is most suitable option. I am amazed. Green tax for the gas, service tax for telecom facilities, more tax for car import,  more TDS, more PF, more HC and more GIS and on goes the list. I may be wrong but I am little confused with the glorious economic policies we have before us. Indications are so vivid that, child Politicians are fiddling with fiscal policy like a toy.

Saving will continue to be a myth. 

Hand to mouth, we shall all survive. 

Pitiable we were and broke we will be. 

Owning a car, our distant dream,

A fairy tale, it shall remain.

oh! Miserable Economic dark days

Find thy own silver linings friends

Drive not they car to office

Use not they phone for official cause

Criminality and Sanctity of Economics

Pay hike for civil servants have just been announced. Its suppose to be a celebration time in the town. But the irony is that there is an avalanche of angry opinions gushing every where. While the topic has infuriated many, civil servants are musing and quite. Surely, there seem to be an issue. First People, it seems are angry with the Government for using a mathematical tricks. Second, People are angry with the way revisions are proposed for politicians, who have otherwise promised to sacrifice many things including their perks like car and pay during the electoral campaigns. And surely, Economists' who worked on this trick for the last many months, must be blushing, scratching and melting somewhere. Read the excerpt below: 

 " 'A mathematician, a Statistician and an Economist apply for the same job. The interviewer asks the Mathematician. "what's two plus two? The Mathematician replies, "Four". The he interviewer calls in the Statistician and asks the same question. The statistician says, "on an average, Four -give or take ten percent." The the interviewer calls in the economist, and asks, "what does two plus two equal?" The economists locks the door, leans close to the interviewer and whispers, "what do you want it to equal?" "

In our case, the Economists' have now equaled "two plus two" to something like 19%, 20%, 21% ....25% for the civil servants and suddenly to 50%, 60%, 70% .....and shockingly to 130% or even more to the Politicians. I am not sure. As I said earlier, I am indifferent and I am yet to do the analysis myself. But if what general public are crying for is true than it is a plain criminal Economics. It simply shows the kind of disregard concern people have shown to the sanctity of Economics and Maths. 

After having read my earlier post, I got a call from one of my reader. He told me about how he is coping with a pair of shoes like me.  And with recent pay hike, he told me that he could afford some thing extra. - a tin of  polish and a shoe brush. We both laughed and said good bye. 

Before I close this post, I want to write something very auspicious and important, Its 2nd June today and every Bhutanese knows the significance of this day. Since its not marked in the calender its understandable for some people to have slipped from their mind. On this day in 1974, our beloved King, His Majesty the fourth Druk Gyelpo was crowned. It is our national event. Its called 'Social forestry day'. Tress are planted with a prayers, -prayers that would bring long life to our king and prosperity to our nation. But I am still wondering why the holiday is being removed from our calender.

Long live the King. Pelden Drukpa, Gyelo!

Pay Revision and My Indifference

In one of my earlier post, I remember writing that I am Customs officer by profession. I also wrote myself being a blogger and reader by passion. Didn't I ? I think I did so. But of late, with smuggling rate shooting up, I am getting bogged down with writing various reports, preparing exhibits, gathering evidence and handing over the people to the Police.

Thanks to such events, I have now discovered a new writing skill. Its called writing the "Chronology of Event". Mind you, it is totally different form of writing from what I normally do. My superiors, friend and colleagues,  big and small keep telling me that its a serious business. So I need to be cent percent conscious.

And here is another thing that is keeping me on my knees and toes. -writing meeting minutes. Sometime I get the feeling that I am becoming a professional minute keeper.

Yesterday, to the happiness of all the Bhutanese civil servants, the National Assembly of Bhutan has finally announced the much awaited (upward) pay revision. Its long over due, but the delay is understandable. Our exchequer, according to talk of the town has gone high and dry on resources. Seriously, when our current Government promised pay hike along with the housing allowance, I really did not believe. For once, I thought that our much talked about pay revision is any thing but a grim possibility even with the presence of Buddha and his blessing. With all sorts of austerity measures in place, our present government, who otherwise promised power and change to the people are rumored to have played the "pay revision politics".

Whatever may be, civil servants will earn more starting this July. So Big Thank you to our Government. Temporary and volatile it may be, it is a cause for celebration. Vehicle quota seems gone, but who cares, there is handy Nu. 160,000 coming. DSA has gone up Nu.1000 per day. Mileage is up too. Nu 6 for low ranks and Nu 16 for high ranks looks ridiculous though. But again, who cares. Let me not go further. But as a Revenue and Customs official I am bit nervous and worried. Because this calls for us to collect more from our tax payers. To make affairs such as these sustainable, it calls for Revenue and Customs people to sweat more, shed more tears, take in more criticisms, and face more allegations.  Interestingly, not many seem to know this.

There are few things that I am not able to understand about the recent pay revision. First. For civil servants, revision percentage is descending as we move up. Second. What  is the rationale behind revision for MPs by more than 50%. I am sorry but this reminds me of a Book called "Animal farm" by George Orwell (where it says only Pigs deserves to drink milk, but I am not saying our MPs are pigs)  Third. Why our PM is begging not to take the proposed hike. Fourth. There is no mention of my department and many other uniformed departments when it comes to uniform allowance. I can go on. But we all know, how pleasing everyone is perpetual impossibility in democratic society.

Now here is the reason why I am saying its a temporary and volatile affair. With pay hike, civil servants will even pay more too. As such house owners have already revised their rental charges. With this revision, it gives them the motivation to do it one more time. Shopkeepers and vegetable vendors are seen celebrating. Prices of meat have gone up and so would the prices of other commodities in coming days.

On many occasions, I bought goods on credit because my bank balance ran low.  I did not respond to those miss calls because my voucher ran low too. Some other time, my family just enough to see the month end and not more. Today am happily managing with just one pair of shoes. And happily I tell people that I am somehow managing to keep my pot boiling. I have sailed across a high and rough inflationary tides and I survived. I don't know whether the proposed hike of 21% would actually cover the inflation. But I have now come to agree that living is no easy business but can be made even without the hike in pay. So I think Pay revision is not the solution at this age but our frugality is. Therefore I am bit indifferent to this revision.