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 :
“ 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can be withdrawn from such accounts for specified period “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 ] :
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