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

Friday, 23 December 2016

Indonesia Shows the Way



While being interviewed by Shereen Bhan ( CNBC TV18 ), two days back , Ruchir Sharma said :

" At 50 % tax rate , I do not expect much hidden / unaccounted BLACK MONEY to get declared by Indians , under recently amended Income Tax Act ( PMGKY Amnesty Scheme )

On the other hand , Indonesia succeeded in unearthing US $ 200 billion worth of BLACK MONEY  {  US $ 200 Billion = approx Rs 136 lakh*crore  } , in last few months

Of this , some $ 30 billion of black money got declared by son of late president Suharto "


Even the Indonesians who are used to Tsunami , were caught unprepared by this unprecedented tide of BLACK MONEY , washing over their shores , from all over the World !


What brought about this " miracle " ?


No rocket science here . Indonesian government believed in the


{  http://myblogepage.blogspot.in/2015/10/from-greed-to-great.html  }


They told the BLACK MONEY hoarders :

" Declare your hidden wealth and pay just 3 % income tax ( to be raised to 4 % after 9 months ! ) "

Our own recent track record is as follows :

Last Undisclosed Assets Declaration Scheme @ 60 % tax + Penalty =   Rs 50,000 crore

*  From Rs 75K Cr deposit in Jan Dhan A/C since 08 Nov ( @ 50 % tax )= Rs 50,000 crore


So , Indonesia beats us , Rs 136 lakh*crore  to  Rs 1 lakh*crore  !


This Indonesian Miracle must be viewed in light of following estimates of India's Black Money :

 *  Stashed away abroad between 2005-2015  = $ 50 billion ( Rs 35 lakh*crore )

*   At 12 % of GDP ( $ 2300 Billion ), our BLACK MONEY economy = $ 276 billion
  (  Rs 185 Lakh*crore )


Now imagine , if we too had offered PMGKY ( Prime Minister's Gareeb Kalyan Yojana ) , to our black money hoarders , at 5 % tax rate ( instead of 50 % announced )


We could have managed to get them to deposit / declare , Rs 100 lakh*crore ( out of Rs 185 lakh*crore ) , with 90 % amount being declared by " You know Who ? "


And  government would have collected , Rs 5 lakh* crore  by way of tax


Perhaps enough to abolish Personal Income Tax from 2017 onwards !


We could have done much better than Indonesia - and 5 years ago - had UPA government considered my following blog / suggestion :

THURSDAY, 9 JUNE 2011

Magic Wand ?


{  http://myblogepage.blogspot.in/2011/06/magic-wand.html  }


May be Shri Arun Jaitleyji could still consider it for the forthcoming Union Budget

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

24  Dec  2016


www.hemenparekh.in / blogs

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