__p It was a coup of sorts for the share broking community when Finance Minister P Chidambaram amended the tax proposal on the securities transaction tax and revised it to 0.015 percent. This was done despite the fact that government will suffer a loss of about Rs 6,000 crore and will now earn revenue of only Rs 1,000 crore. A victorious time for the brokers indeed.
p____p When Budget 2004-05 was announced, two major trading communities became casualties – the brokers and the assemblers. Two weeks later, the brokers have managed to get the proposal revised, while the assembler community continues to struggle with the uncertainty.
p____p Why is this so? It’s because the assemblers have not been united in their protest against the proposals. The brokers, on the other hand, left no stone unturned when it came to highlighting their plight. They set their differences aside and presented a united front to the government. They fought shoulder to shoulder to get the proposed tax withdrawn. The message was clear, consistent and unanimous – withdraw the tax or the index will continue to fall.
p____p The assemblers, on the other hand, are waiting for direction. There is no unity. Except for the Delhi Computer Traders Association, no other association has protested or gone on strike to demand clarification. There has not even been a move to come together and take a delegation to the finance minister.
p____p The channel needs to come together and form a national body that will advocate for it in the higher circles. It’s good to concentrate on business, but it’s even better to put down business practices that will ensure continuity and growth of the business. And now is the best time to lay this foundation.