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Editorial
What if speaking out can lead to imprisonment? Let us be honest. This thought has crossed many minds since the conviction of Rahul Gandhi by a criminal court in Surat for the offence of defamation.
Critics might summarily dismiss such a concern, reasoning that the case is coloured by political interests and ordinary Indians are not likely to be convicted for defamation.
But fear exists and Rahul Gandhi’s conviction has increased people’s worries. A recent report by Common Cause and Lokniti-CSDS, based on a state-level survey, reveals, “nearly two out of three respondents are scared to post their political or social opinions for fear of legal action”.
Indians seem to have an intuitive understanding of the risks of voicing their opinions – they fear the letter of the law, in all its severity, will be weaponised against them and used as a tool to restrict their fundamental rights.
At present, the criminal offence of defamation is contained under Section 499 of the Indian Penal Code, 1860 and the civil law that provides for damages and injunctive relief.
On May 13, 2016, a legal challenge to criminal defamation failed with the Supreme Court expressing its anxiety about maintaining the standing of individuals.
It held that, “the right to reputation is no less important a right than the right to freedom of speech”. This legal reasoning had the effect of changing the relationship between defamation and the right to freedom of speech — from an exception to the right to freedom of speech, defamation became a competing right.
Explained
Sales tax and actors’ copyright: questions in Anushka case (Page no. 14)
(GS Paper 3, Economy)
Would an actor hold a copyright for her performances and is she liable to pay sales tax for it? The Bombay High Court heard a case last week involving actor Anushka Sharma in which she challenged the sales tax levied against her income from advertisements and performances in award shows. The case raises questions on how intellectual property is treated for taxation purposes.
Actor Anushka Sharma had moved the Bombay High Court challenging the Mazgaon sales tax deputy commissioner’s orders raising dues for 2012-13 and 2013-14 under the Maharashtra Value Added Tax (MVAT) Act.
The state had levied Rs 1.2 crore sales tax (inclusive of interest) for 2012-13 on Rs 12.3 crore revenue received by Sharma. For 2013-14, Rs 1.6 crore tax was levied on her for the Rs 17 crore she had received. This would be remuneration for advertisements and performances at award shows received by the actor.
At the heart of the issue is how tax officials interpret a key change in copyright law brought in 2012 to protect rights of artists.
Sharma’s remuneration is from tripartite agreements with Yash Raj Films (YRF) which was her agent and a third party for ad films, stage shows etc.
As per the tax department, Sharma, who has the “first owner of copyright” on all her artistic work is selling that right through these agreements and hence is liable to pay sales tax and not just treat it as personal income.
Economy
Oil surges as OPEC+ surprise output target cut shakes markets (Page no. 15)
(GS Paper 3, Economy)
The surprise decision of OPEC and its allies, including Russia, to cut oil output may cause an immediate rise in prices, delaying revision in fuel prices in India.
The grouping of Organisation of Petroleum Exporting Countries (OPEC) and its allies, called OPEC+, on Sunday decided to further cut oil output by around 1.16 million barrels.
The move led to Brent rising by almost 6 per cent to USD 84.58 per barrel. This spurt will reverse the softening in rates witnessed in the basket of crude oil that India imports.
The Indian basket was hovering in the range of USD 73-74 per barrel for most of the second half of last month and had brightened prospects of a cut in petrol and diesel prices.
Public sector oil companies had been recouping losses they incurred for holding rates when crude oil prices shot through the roof.
Last month, international oil prices and retail pump rates had come at par. But now with the prices rising, the difference between cost and retail prices will reappear.
India imports 85 per cent of its oil needs and its fuel pricing is indexed to international rates. Petrol and diesel prices have been on a freeze for almost a year now. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62 a litre.
State-owned fuel retailers are supposed to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices but they haven’t done that since April 6, 2022.
World
Finland turns to the right as it prepares to enter NATO today (Page no. 16)
(GS Paper 2, International)
Finnish voters have given a boost to conservative parties in a weekend election, depriving left-wing Prime Minister Sanna Marin of another term as the country prepares to make its historic entry into NATO.
Marin won popularity for her Cabinet's handling of the COVID-19 pandemic and for her European Union nation's strong support for Ukraine following Russia's full-scale invasion last year.
But Sunday's election was largely fought over economic issues, with voters in the nation of 5.5 million people shifting their allegiances significantly to parties on the political right as they seek solutions to rising state debt, inflation and other economic problems.
The bloated debt will pose a challenge for the new government, particularly since NATO membership will require Finland to increase its defense spending. Finland is to join NATO after Turkey ratified its membership last week, lifting the last hurdle to membership for the Nordic nation that shares a long border with Russia.
The center-right National Coalition Party, or NCP, won 20.8% of the vote, which is more than any other party and puts it in a position to try to form a government.
The right-wing populist party The Finns won 20.1% and Marin's Social Democrats 19.9%. Juhana Aunesluoma, a professor of political history at the University of Helsinki, noted that about one-third of the votes went to left-wing parties and two thirds to parties on the right.