In Satyamevajayate TV episode ( 23 March 2014 ) , Amir
Khan had one expert present the following fact :
Market value of ALL the fossil fuels + ALL the minerals
, lying under Indian soil is ,
A =
Market Value = Rs 5
* Thousand * Lakh *
Crores
If we were to extract all of these in the next 100
years , then
B = Annual Output
= Rs 5
* Ten *
Lakh * Crores
( on dividing
" Thousand " by " Hundred " )
But how much additional investment would we need to get
such an output ?
Let us assume that we need an additional investment of "
Rs TEN " to raise an additional output of " Rs ONE "
That is an ICOR of 10 ( " Incremental Capital
Output Ratio " , which is now close to 6 in our country )
So , let us divide B
by 10 , to get ,
C
= Additional Investment = Rs 5
* Lakh *
Crores
Bingo !
If we are to believe sundry Economists ( Baba Ramdev /
Narendra Modi etc included ) , then that is exactly ,
D
= Black Money = Rs 5 * Lakh * Crores
( Amount locked up / stashed away by Indians in Swiss +
local banks + gold + land etc , by way of " Unproductive Assets " )
Now , all that we need to realize our underground
resources is a " Magic Wand " that would convert this Black Money
into White Money !
Turn our " Unproductive Assets " into "
Productive Assets " (Rs 5 Lakh Crores )
And enable people to do so legally !
Here is my oft-repeated suggestion ,
" Inverse " the Personal Tax slabs as follows
:
> Up to Rs 2 lakhs..................... NIL
> 2.1 - 5.0
lakhs...................... 10 %
> 5.1 - 10 lakhs....................... 8 %
> 10.1 - 20
lakhs...................... 6 %
> 20.1 - 50 lakhs..................... 5 %
> 50.1 - 100
lakhs..................... 3 %
> Above 100
lakhs...................... 1 %
What is likely to happen with such " INVERSE TAXATION
" regime ?
Following few things :
> Total personal tax payer base will go up dramatically
from current 4
crores tax-payers
> with this " INVERSE TAX REGIME "
, there will be no incentive to evade
taxes and to generate " BLACK
MONEY "
There will be no resistance to accept ALL payments by cheque / electronic
clearance
The more you disclose as your income , the less
you pay by way of taxes
> For a change , we will learn to reward honesty /
efficiency / productivity !
No need to bribe those Income Tax
officers !
> Suddenly , lakhs of crores of BLACK MONEY will become WHITE MONEY
> There will be a huge surge in bank deposits ( - even
with , the inevitable
lower interest rates )
> Banks will be awash with funds to finance businesses /
infrastructure
projects etc , encouraging entrepreneurs /
self-employed to set up new
businesses ( at 2 % interest rates of loans ) and
generate millions of jobs
Amir Khan said ,
" If we divide Rs 5 * Thousand * Lakh * Crores , by 1200
million Indian population , then each one of us , is the proud owner of Rs 40
lakhs !
"
My suggested Magic Wand would eliminate poverty - something which
Congress Governments have been trying to do for the past 60 years !
* hemen parekh
( 24 March
2014 / Mumbai
)
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