This may
well turn out to be the Mother of all scams. According to a latest CAG report,
the country could have lost trillions of rupees since independence because of the
failure of successive governments to auction or tax the most important natural
resource: Air.
Using a
complex set of formulae, the federal auditor concluded that greedy corporates
made a killing by using the air freely without having to pay anything to the
government. The private sector should have been brought under “pay-as-you-go”
regime where the organisations pay air tax on the income they earn.
“These
profit-driven private companies have been breathing it easy, quite literally.
Instead, the governments should be breathing down their necks. How can we
afford to lose such an important source of revenue?” the C AG said in a report
titled “ConAir, an anatomy of national loot.”
The CAG
proposed a scientific formula to calculate the total volume and density of air
that a private firm uses depending on the area it occupies, number of people it
employs and its productivity. “Once the private entrepreneurs submit project
reports, the governments concerned should have gone for either auction route or
calculated an appropriate tax structure for utilizing the crucial natural
resource,” the report said.
By not doing
so, the nation has suffered an incalculable loss, the CAG said and pegged the
figure at 65 960 trillion rupees. “We are not here to air-brush the
economy but to clear the air about what we think is the biggest scam in
Independent India,” it said.
However, a
junior CAG field official, who retired recently, disputed the figure and the manner
in which it was arrived at. He said he had suggested a much lower figure of 12 230
trillion but was overruled by his superiors.
Meanwhile,
the Union Minister for Countering Scam Reports, Kapil Sibal, dubbed the loss as
“notional and presumptive”. “Clearly,
the CAG has overstepped its brief and transgressed into the policy making area
which is the prerogative of the government,” Sibal argued.
The BJP had
initially wanted to seize the opportunity to attack the UPA government for
perpetrating yet another mega scam but soon realized that the “ConAir” report
talked about the cumulative losses since independence.
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