(This article was originally published on 20th June, 2016)
By: Mehta Himanshu
Anil Bokil , one of the key members of Arthakranti Sansthan (Institute for Economy Revolution), was given time to share his ideas with Prime Minister Modi. He was given 9 minutes for the purpose but the PM Modi heard him for 2 hrs.
What proposals did he make to the PM?
This “Arthakranti Proposal” has been given by a Pune (Maharashtra) based “Arthakranti Sansthan” which is an Economy Advisory body constituted by a group of Chartered Accountants and Engineers. Their researched proposals have been patented by the Sansthan.
It is claimed that “Arthakranti Proposal” is an effective and guaranteed solution to cure Black Money Generation, Price rise and Inflation, Corruption, Fiscal Deficit, Unemployment, Ransom, GDP and industrial growth, terrorism and good governance.
What is in this Artkranti Proposal ?
Arthakranti Proposal has FIVE points of action simultaneously. These are:
(1) Scrap all 56 Taxes including income tax excluding import duty.
(2) Recall and scrap high denomination currencies of 1000, 500 and 100 rupees.
(3) All high value transactions are to be made only through banking system like cheque, DD, online and electronic.
(4) Fix limit of cash transaction and no taxing on cash transaction.
(5) For Govt. revenue collection, introduce single point tax system through banking system – Banking Transaction Tax (2% to 0.7%) on only Credit Amount
Here are some of the important points that one needs to note. These are as follows:
(1) As of today in India the total banking transaction is more than 2.7 lakh crores per day; say, more than 800 lakh crores annually.
(2) Less than 20% transaction is made through banking system as of today and more than 80% transaction is made in cash only, which is not traceable.
(3) 78% of Indian population spend less than 20/- rupees daily and they do not need 1000/- rupee currency note.
Now, what will happen if All FIFTY SIX Taxes including income tax are scrapped? This will be direct outcome of this measure:
(1) Salaried people will bring home more money which will increase purchasing power of the family.
(2) All commodities including Petrol, Diesel, FMCG will become cheaper by 35% to 52% .
(3) No question of Tax evasion will be there and so there will be no black money generation.
(4) Business sector will get boosted. So it will generate self employment.
Next, what will happen if 1000/ 500/ 100 Rupees currency notes are recalled and scrapped? The outcome will be as follows:
(1) Corruption through cash payment will be stopped 100%.
(2) Black money will be either converted to white or will vanish as billions of 1000/500/100 currency notes hidden in bags without use will be reduced to simple pieces of papers.
(3) Unaccounted hidden huge cash in India is skyrocketing the prices of properties, land, houses, jewellery etc and hard earned money is loosing its value. By this measure this trend will stop immediately.
(4) Kidnapping and ransom, taking place through cash payment of “Supari killing” will be stopped.
(5) Terrorism supported and funded by the cash transactions will stop.
(6) No one can buy high value property in cash showing very less registry prices.
(7) Circulation of “Fake Currency” will stop because fake currency printing for less value notes will not be viable.
Next, what will happen when Banking Transaction Tax (2% to 0.7%) is implemented? The outcome will be as follows:
(1) As of today if BTT is implemented govt can fetch 800 x 2% = 16 lakh crore where as the current taxing system is generating less than 14 lakh crore revenue.
(2) When 50% of total transaction will be covered by BTT sizing 2000 to 2500 lakh crores, Govt will need to fix BTT as low as 1% to 0.7% and this will boost again banking transaction many fold.
(3) No separate machinery, like the income tax department, will be needed and tax amount will directly be deposited in State /Central/ District administration accounts immediately.
(4) As transaction tax amount will be very less, public will prefer it instead paying huge amount against directly/indirectly FIFTY SIX taxes.
(5) There will be no tax evasion and govt will get huge revenue for development and employment generation.
(6) For any special revenue for special projects, govt can slightly raise BTT say from 1% to 1.2% and this 0.2% increase will generate 4,00,000 crores additional fund.
What will be the effect of these measures if they are implemented today? The outcome will be as follows:
(01)Prices of all commodities/ products/ services/things will come down.
(02)Salaried people will get more cash in hand.
(03)Purchasing power of society will increase.
(04)Demand will boost, so will be the production and industrialisation and ultimately more employment opportunity will be there for youth.
(05) Surplus revenue will be available to the govt for effective health/ education/ infrastructure/ security/ social works and projects.
(06) Cheaper and easy loans from banks; interest rate will come down.
(07) Tendency of society will changes from scarcity to quantity.
(08) Spare white money for political system will be floating within everyone’s view for clean politics.
(09) Prices of land/ property will come down,
(10) No need to export beef to cover up trade deficit
(11) Sufficient fund for scientific research and development will be always available.
(12) Society will be free from “corrupt elements” now thriving on “bad money”.
“ArthaKranti proposal” will fully change India forever.
Let PM Modi apply his mind and take decision in this direction!
Filed under: Contemporary World
