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President’s Message |
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All India Federation of Tax Practitioners which was established on 11-11-2008 has completed 32 years of long journey in November, 2008. It is a matter of great pleasure that this year we have celebrated the Foundation Day on 11-11-2008 in different zones. Under the able leadership of Shri P.V. Subba Rao and Dr. M.V.K. Moorthy the Foundation Day was celebrated at Hyderabad in which the professionals other than tax professionals have also contributed their views in the interest of the health of all the members. The South Zone deserves fullest congratulations for organising the successful National Tax Conference at Hyderabad and also Foundation Day Function of the Federation on 11-11-2008 The Foundation Day function has also been celebrated not only on 11-11-2008 by the Central Zone but in effect a Foundation Day week when one day National Tax Seminar was also organised on 15-11-2008 by AIFTP Central Zone in collaboration with Tax Professional Association at Ujjain on the theme (“Quick justice is demand of the day”), Mr. M.D. Sodani, Chairman, AIFTP, Central Zone, Shri J.K. Ranka, National Vice President, Shri S.C. Goel, President, M.P. Commercial Tax Association and Shri G.B. Das, Advocate, President Tax Practitioners Association, Ujjain deserves fullest congratulations for their successful efforts in organising the Foundation Day function in different parts of Central Zone. This year the Foundation Day has been celebrated at New Delhi on 11-11-2008 by the North Zone of AIFTP under the leadership of Shri H.C. Bhatia and his team. Since the Federation was born on 11-11-1976 with the blessings of late Shri N.A. Palkhivala, the North Zone decided to celebrate the Foundation Day by having Nani A Palkhivala Memorial Lecture at New Delhi in which Hon’ble Mr. Justice Dr. Arijit Pasayat, Judge, Supreme Court of India, Mr. Goolam E. Vahanvati, Solicitor General of India and Mr. Soli J. Sorabjee, Former Attorney-General were the Chief Guests and Guest of Honours. As the birthday of any person is the important event in the entire family and also for their friends and relatives. Similarly, the Foundation Day on 11-11-2008 has been a very important day for every member of the Federation all over the country. This day reminds us the objects of the Federation which are to be implemented in true spirits. On this occasion, I request every member of the National Executive Committee as well as the members of Executive Committee of different zones to encourage all the members to actively participate in different functions and activities of the Federation. We had decided to make sincere efforts to increase life membership to 5,000 by the end of December, 2009. Every one has to try to achieve the target. At the same time it is very essential that all the existing life members should be persuaded to get themselves actively involve in the functions and activities of the Federation. Today we are facing a global financial crisis. In the background of U.S. financial crisis a chain reaction has taken place throughout the world. Since the collapse of Lehman Brothers, the advanced countries have introduced a comprehensive package of financial measures to deal with the crisis. In an article of Shri Sudipto Mundle an economist of our country it has been mentioned, I quote : “Fortunately, direct Indian exposure to the US crisis has been limited. Indirectly, Indian stock prices have been affected by foreign institutional investors’ (FILs) withdrawals : FILs invested well over Rs. ten lakhs crore between January 2006 and January 2008, driving the Sensex first past the 10,000 milestone, and then 20,000 over the period. But from January to mid-October this year, FILs pulled out over Rs. 50,000 crore, partly as a flight to safety and partly to meet their redemption obligations at home. These withdrawals drove the Sensex down from over 20,000 to less than 10,000 in only nine months. The Reserve Bank of India (RBI) reacted swiftly to restore liquidity and calm the markets. It reduced the cash reserve ratio (CRR) by 2.5 percentage points in two steps, created a special Rs. 20,000 crore window for bank lending to mutual funds, and provided another Rs. 25,000 crore as part reimbursement for farm loan waivers. These measures generated extra liquidity of Rs. 1,45,000 crore. But on account of it the growth will certainly be affected, and could fall from 7 per cent or more this year to 6 per cent next year, reflecting the full-year impact of the crisis. Such growth rates of 6-7 per cent are high by developing country standards, and beyond the reach of advanced countries even at the best of times. India is only facing a growth deceleration and not a recession.” In the context of global financial crises it is absolutely essential that the Government should also frame its financial policies keeping the future growth, in accordance with the requirement of the day for which the tax professionals can also give the substantial contribution with their useful suggestions. Let us join hands to shape and frame strategies by focusing on the real economy and to suggest the same to the Government for its consideration. We also undertake to develop the young members of the Tax Bar, who shall be the pillars in the coming years.
Bharat Ji Agrawal |