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

Monday, 4 July 2016

Epilogue of Exit ?


If Referendum was the Prologue , Exit will be the Epilogue

And George Osborne ( Chancellor of Exchequer - UK ) fired the first salvo yesterday by announcing :

"  In UK , we will reduce Corporate Income Tax from 20 % to 15 % "

Earlier last week , he told his countrymen :

" We will have to learn to live within our means "

He wants UK to avoid the mistake ( of expenses exceeding the earning ) which is forcing many European countries ( and some South American countries ) , to launch a series of unpopular " Labour Reforms "

Osborne knows that for 45 % of its world-wide exports , UK depends upon " Tariff Free " entry of its goods into EU

Once UK exits , EU will impose 20% - 30 % tariff on British goods , making them uncompetitive

That will force many current UK factories ( British-owned or EU / USA / India owned ) , to relocate inside EU , leading to massive job losses in UK

By reducing Corporate Income Tax , Osborne hopes to retain those units in UK , thereby saving these jobs

This is just the beginning !

As the full impact of BREXIT unfolds , expect the following tougher / unpopular measures :

*   Freeze wages / salaries of government employees, and / or cancel annual salary increments / leave etc

*   Cutting back on free ( or highly subsidized ) Public Services ( Health - Transport - Education etc )

*   Freeze on recruitment in government departments , and / or increase working hours

*   Pull out of expensive overseas military interventions ( eg: Syria )

*   Negotiate for reduction in UK's contribution to various Word Organizations

*   Cut out " Social Security " available to EU immigrants ( eg; 850,000 from Poland )

*   Stop immigrants from Iraq / Syria / Pakistan / Afghanistan etc from coming in

*   Without violating WTO rules , introduce all kinds of indirect subsidies for goods manufactured in UK

*   Go into overdrive to " Sell " British Goods to India



In short , Osborne will leave no stone unturned to make UK , a " Low Cost Economy " to remain competitive and not lose the " Export Market " when EU tariffs go up . And make inroads into new markets


Although not faced with any kind of " Exit Crisis " , we in India , need to take following steps RIGHT NOW , to ensure that our economy, does not become a " High Cost Economy " leading to a crisis :


*  Abolish Personal Income Tax ( to eliminate CORRUPTION )

*  Introduce RFID sensors in Rs 500 / 1000 ( plastic ) currency notes  ( to eliminate BLACK MONEY )

*  Introduce decreasing Corporate Income Tax , linked to rising Employee Count for companies ( JOB CREATION )

*  Introduce EB-3 Scheme to bring back $ 500 billion of Black Money stashed abroad by Indians

*  Create Self Employment ( See my blog : A New Economic Order - Start Up Act , 2015 )

*  Enable Indians to remotely operate / maintain , factories / offices around the World , (  Back Factory )

*  Increase accountability of Govt Officers by implementing mobile app " I SIN > < U SIN "  



Right now , new Ministers are being sworn in Rashtrapati Bhavan

Our only hope is that , some of those new faces will have the courage to introduce the above-mentioned reforms , without worrying about " losing face "

It is better to have tried and failed rather than having failed to try !

Or will this NDA government also get consigned to history's dustbin when 2019 elections arrive ?

--------------------------------------------------------------------------------------------------------------------------

05  July  2016

www.hemenparekh.in / blogs


   

No comments:

Post a Comment