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

Thursday, 31 October 2019

Congratulations, Shri Surjit Bhallaji,



For a very practical and equally bold suggestion of introduction of a one-time AMNESTY SCHEME for undisclosed income , named ELEPHANT BONDS


Read :





I have suggested such a scheme, repeatedly in the past ( details at links below )



Following is a comparison between what the Govt Committee ( headed by Shri Surjit Bhallaji ) recommended and my own past suggestions :


=========================================================
                          

AMNESTY  SCHEME  FOR  UNDISCLOSED  INCOME



=========================================================



Parameter
Govt Comm. Recommendation
Summary of my past
Suggestions
Name of Bond
Elephant Bond
Infrastructure Bonds / SPV
To be used for / Purpose
Infrastructure Investment
Infrastructure Investment
Amount of declared Income
No limit ( ? )
No limit
Rate of Tax on declared Income
15 %
0 %

[ In 2017, Indonesians disclosed $ 342 Billion by paying just 2-4 % tax – no questions asked / Tax collected from 745,000 persons amounted to $ 2.3 Billion ]

Minimum % age of declared Income to be mandatorily invested in Infra Bonds
40 %
100 %
Interest that Bonds pay
5% (credited after 20 years )
5 %
Period of Lock-In
25 years
10-15  years



In the past , I have sent following emails to our Cabinet Ministers / NITI Aayog etc :



Magic Wand  ?                                          [ 09 June 2011 ]

Prime Minister Who Listens                        [ 03 Dec 2016  ]

Indonesia Shows the Way                          [ 23 Dec 2016  ]

One Infrastructure SPV ? More will follow     [ 20 Mar 2017  ]

What Goes Out , Comes Back ?                   [ 05 May 2017 ]

Why a Begging Bowl ?                                [ 08 May 2017 ]

Private Sector in Infrastructure ?                 [ 28 July 2017 ]

Nibbling on Crumbs ?                                 [ 08 Aug 2018 ]

#FiscalDeficit / #IndianEconomy ?              [ 18 Oct 2017  ]

But , Where is the Money ?                         [ 01 Dec 2017 ]

Thanking You in Anticipation !                     [ 24 Jan 2018 ] ( Links of 22 Emails )

 

“ Under a BLACK MONEY AMNESTY SCHEME , all hidden income deposited in Infrastructure Bank Accounts ( similar to Jan Dhan Accounts ) , can only be used for investing in Govt Infrastructure SPVs , with a lock-in period of 10 years and all interest / dividend to be only credited to such Infrastructure Bank Accounts and no money can be withdrawn from such accounts for specified period “

 

======================================================

The ELEPHANT BONDS recommended by Shri Surjit Bhallaji, should be read in the context of the following news report which appeared today :



Highlights :

 

Ø  The slow pace of economic growth stems from a stunted return on investment for large infrastructure projects, according to outgoing Power Secretary SC Garg.

 

Ø  “There is an enormous unmet demand in housing, roads, airports, railways, energy, irrigation in almost every infrastructure segment. Yet investment in infrastructure has got almost stalled,” he said.


 

Ø  Businesses do not see opportunities in several infrastructure sectors for the present,” he said.

 

Ø  Garg went on to highlight how there is a much lesser return on investments made in large infrastructure projects in the country.


 

Ø  “A lot of policy action is needed to energize the investors in making investments in the infrastructure sector,” he added.

 

======================================================

Dear Madam Nirmala Sitharamanji,

 

I urge you to accept the recommendation made by Shri Surjit Bhallaji and implement it with the following modification :

 

Ø  Reduce tax liability from proposed 15 % to 0 %


Ø  Full amount disclosed must be invested in Govt Infra Bonds


Ø  Bonds to pay annual interest @ 5 % ( but cannot be withdrawn for 10 years )


Ø  No questions / No litigations / No penalty / No re-opening of past tax-returns

 

With this modification, it is possible to raise $ 1,000 Billion ( extrapolating from the example set by Indonesia ), within 6 months

 

======================================================

01  Nov  2019

   hcp@RecuitGuru.com

==============================

Added on 02 Nov 2019 [ Indian Express ] :


Elephant bonds can bring back $500 billion stashed overseas’

These ‘elephant bonds’ would be an avenue for people to bring their offshore undisclosed wealth into India without fear of prosecution, suggests the report.

 

 


  



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