Extortion by the government: If it’s illegal, make it legal, or heck, force it to be legal.

The Union government has promulgated an ordinance asking tobacco giant ITC to pay Rs 419 crore in taxes. The taxes were in a dispute that went up to the Supreme Court. The Supreme Court decision rejected the government demand and instead asked it to pay ITC Rs 350 crores it had extracted from ITC in excessive taxes.

To kill the Supreme Court’s decision, it decided to change the law. Since a Parliament session was still away, it decided to bring in an ordinance.

The case is simple. Cigarettes are sold in packs that have the maximum retail price printed on them. But the small retailers sell cigarettes in loose. Suppose a pack of 20 cigarettes costs Rs 55. One cigarette from that pack should cost Rs 2.75, but the small galla seller would take Rs 3 for one. It works out simpler and the small retailer makes a little extra for selling it loose.

So some 15 years ago, the government asked ITC to pay excise on the basis of the maximum price a cigarette was sold for. ITC went to court saying it would pay at the rate it sells it to the retailer. It won the case.

But the government, to fill its coffers, decided to extort some money.

Extortion of a different kind
I see fresh posters and banners exhorting people to help the victims of December tsunami by donating money to the Prime Minister’s Relief Fund.

Our forex reserves are brimming, the economy is booming. I still do not understand why the government can’t give a thousand crores to the affected people from its own coffers. That’s less money than what was made in the fodder scam in one of India’s poorest state.

Mrs Gandhi, lie and behold?

Mrs Gandhi has spoken. Her party has promised to normalise law and order in 36 hours. She says law and order must improve. These voices perpetuate the lie that Laloo Yadav rules the state and he's responsible for the pathetic state of Bihar. It's a lie because Laloo and the Congress together rule Bihar. All the Congress MLAs are ministers in Rabri Devi's government. Mrs Gandhi would like to forget that and her talk about law and order gives the impression to the rest of the nation that she has nothing to do with that. You were supposed to be the courageous one, Mrs Gandhi. So stand up and own up. You can't share the spoils and then criticise the loot. Ulta chor chor ko daante!

Noteworthy: MEA goes anal on Iraq vote

India’s external affairs ministry, headed by the man in a timewarp Natwar Singh, finally responded to Iraq’s landmark Sunday elections. The world’s largest democracy was too anal to believe as it said a few noteworthy words about the first signs of democracy in Iraq in 50 years.
“The holding of elections is a noteworthy development.” Noteworthy, huh?
Mr Singh doesn't have much time from trying to resurrect the a dead body called non-aligned movement. Looks like he has finally decided to take note of other developments in the world.