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

Thursday, 28 July 2016

GST Conundrum : A Compromise Formula



Last evening , TV channels were reporting that BJP and Congress are quite close to reaching a compromise on GST bill , expected to be tabled in Rajya Sabha next week

I believe , it is possible to break the deadlock , by exploring introduction of some variation of suggestions made by me in my following blogs ( emailed to Ministers / MPs / Political Leaders ) :

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Jan Dhan Sarjan Yojana ( 31 Aug 2015 )

By launching ,  Jan Dhan Sarjan Yojana 

 ( People's Wealth Creation Scheme )


As follows :

>   If GST is going to be ( say ) 20 % , Government will transfer from this ,
     2 % ( ie 10 % of that 20 % ) , to the PPF account of the Consumer /
     Buyer , who pays for the Goods / Services purchased , using a RuPay
     Card or a " Mobile Wallet " app


     This will motivate millions of self - employed to open  PPF  accounts !


>   Since interest from a PPF account is tax-free , every citizen would , now
     want to make all payments thru RuPay card or a Mobile Wallet App


>   RuPay cards are already tied up with accounts opened under Jan Dhan
     Yojana


>   Mobile Wallets Apps will also get tied-up with thousands of branches of
     Payment Banks , which will open in next 18 months


     Just imagine the number of new accounts that will get opened in the
     1,55,000 + post offices of India Post  !


>   In this way , Social Security will become " Self Financing " !


>   Currently , in India , some 97 % of all payments are " Cash Payments ".
     With introduction of this proposal , these will drastically decline


>   Any payment made , using RuPay card or a Mobile Wallet App , will make
     available to the Income Tax Department , full digitized record of each
     such transaction , including :

     *  Who  made the payment

     *  To whom was that payment made

     *  When was that payment made

     *  For what purchase , was that payment made

     *  What was the amount paid


>   One , very desirable consequence of  Jan Dhan Sarjan Yojana
     will be that our " Domestic Savings Rate " will climb back to 30 % !

      In turn , this will help us wither global economic crisis , much better  !


I have a feeling that my proposal will be welcomed by all sections of our Society and find overwhelming support for the passing of the GST bill by all political parties


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Making  a  Mountain  out  of  a  Mole hill ( 19 Nov 2015 )


*   2 % ( out of 27 % ) of GST , to be directly deposited in the PPF a/c of the buyer

    ( This will ensure that all citizens have PPF account )

 *   This 2 % to be used to pay the premium for that person's health insurance

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Structural Reforms ( 30 Jan 2016 )


Transferring 10% of GST ( ie 1.8 % out of 18 % ) to PPF accounts of the


    buyers ( increase Domestic Savings )


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People of India are watching - and hoping !


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29  July  2016



www.hemenparekh.in / blogs

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