Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 29 May 2011

Baba Ramdev and Black Money

There is no doubt that a billion Indians will support Baba Ramdev in his campaign to bring back black money.
But even if he succeeds, new black money will replace the old black money !
You cannot cure a disease by treating its symptoms.
We must find a way to “ stop “ the generation of black money in the first place.
New finance minister of West Bengal, Dr. Amit Mitra recently confirmed that out of every rupee of revenue, 35 paise goes towards interest payment on state borrowings and 58 paise goes to pay salaries of Govt. staff, leaving a measly 7 paise for development.
So the honest tax-payer is asking :
“ When I pay the government, one rupee by way of tax, I get back only 7 paise worth of infrastructure / housing / education / healthcare etc. Then why pay taxes ? Why not finance these needs directly on my own – bypassing the tax authorities ? “
And this is true of nearly all the states of India.
My suggestion :
If a tax payer invests any amount into Govt approved Special Purpose Vehicles ( SPV ), solely devoted to to create infrastructure / housing / education / healthcare etc, let that money be tax-free, with no questions asked as to its source. All the profits / dividends earned by an individual thru such investments must be made 100 % tax-free and forever .
Just imagine what an annual investment of $ 100 billion ( Rs.5 lakh crores ) on activities like these can do to our economy !
Within 5 years, it will pull-up 500 million people above the “ Poverty Line “.
My request to Baba Ramdev :
Please refocus your strategy.
With regards
hemen parekh

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