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

Saturday, 28 September 2019

Listen to the Lone Voice !





If you do not count late eminent legal luminary Nani Palkhiwala , Anil Bokil of Arth Kranti , and myself , then Subramaniam Swamy’s is the lone voice , recommending  total abolition of Personal Income tax



Here is what he said recently in the World Hindu Economic Forum yesterday :



Highlights:

#  Subramanian Swamy advocated the scrapping of unnecessary taxes and abolition of
    income-tax

#  “We have got such complicated taxes that people don’t even know most of them.
    Income-tax should be abolished as it is the most unbalanced tax in this country,” he said


And Anil Bokil’s proposal is quite similar but goes further and spells out how to re-write the entire system of taxation 


As far as I am concerned, I must have sent to the Cabinet Ministers , 20+ emails , pointing out how this abolition would :


Ø    Reduce corruption / black money

Ø    Boost the Consumer Spending and hence the Economy



Exactly 2 YEARS back ( 29 Sept 2017 ) , in my email to the Cabinet Ministers , I put forward my logic ( for abolition ) , as follows :



·         There will be no incentive for tax evasion / avoidance 

This will be a permanent  
FULL STOP to future generation of Black Money


*   With NIL personal tax to pay , all the cash ( black money , no doubt ! ) ,
    lying in bank lockers , will get deposited in official bank accounts , within
    one year


*   All payments will be received by cheques and deposited in Bank Accounts



*   
All stashed away Black Money will , somehow , on its own , find its way in bank
     accounts, - including Black Money lying in Foreign Banks , making SIT redundant !

     


*   
Savings rate will go up dramatically


*   
That will lead to greater purchasing power for all people


*   
Leading to higher domestic consumption of FMCG / Consumer Durables


*   
This will result in huge collection of GST , offsetting revenue losses


*   
Demand will go up , boosting manufacturing


*   
With rise in manufacturing , sub-contracting / outsourcing will increase , giving a big
     boost to MSME sector
 

*   
If manufacturing goes up , employment / self-employment ,  will go up


*   For a change , we as a Nation , will learn to celebrate , 


     #    
Wealth Creation as a means to reduce poverty

     #    
World-size Companies to take on the World


*   
There will be less pressure on demands for higher salaries / wages


*   
If salaries / wages do not rise , inflation will ease


*   
Cost of manufacturing too , will go down


*   
Era of " Low Cost Economy " will set in motion, VIRTUOUS CIRCLE 


*   
Savings will move from gold / land to Financial Assets


*   
With a low cost structure , our products / services  will become , internationally
     competitive and exports will go up


*   
That will improve our current negative Trade Balance / CAD


*   This ( abolition of Personal Income Tax ) 
MUST be coupled with SPVs for  :


     #    
Infrastructure Projects ( especially Smart Cities / Corridors etc )

     
#    Educational Institutions

     
#     Skill Development Institutions

     #     
Health care Facilities

     #     
Solar Power ( Eqpt Mfr / Generation / Transmission / Distribution )

     #     
Digital India ( Broadband ) Network


     
No questions must be asked as to the source of money invested in such SPVs


    All income ( Corporate Income or Personal Income by way of dividends / interests etc
    ) arising out of investments made in such SPV , must be tax-exempted


    SPVs , themselves , must not need to pay any taxes for 10 years


        
         Take away incentive to evade taxes , thereby stopping future generation
    of Black Money



*    Channel all existing Black Money ( locked up in assets , in India or
      abroad ) into the main stream of economy ( Infrastructure Building )


*    Enable current annual inflow of inward remittances from overseas
      Indians to go up from $ 70 Billion to $ 700 Billion


*    Through rapid development of Infrastructure , generate Self
      Employment for 12 million youth every year


*    Drastically reduce FDI requirement for rapid growth of economy


*    By cutting down on government outlay for Infrastructure , reduce govt
      borrowing from market and consequent debt servicing


*    Raise GDP to 10 % by 2018



Why  is  such a BOLD  step urgently required ?



Current tax regime ,


*   Punishes honest people


*   Penalizes wealth creation


*   Encourages creation of " Black Money "


*   Provides incentive for tax evasion


*   Diverts resources into unproductive assets such as cash / gold / land  etc


*   Stops people from working harder / smarter


With this regime , people tend to ask :


*   Why should I work hard and earn more , if the more I earn the more I pay  ?

      


*   Why not evade paying taxes by hiding real income ?


*   How will I ever be able to buy that 1 room flat costing Rs 50 lakhs ?  I
     need Rs 20 lakhs by way of black money to buy it ! Where do I get that ?
    


*   For every rupee that the government collects from me as tax , only 15
     paise come back to me in the form of civic amenities .



Dear  Policy Makers :


This is the SIMPLEST – EASIEST – CHEAPEST way to revive our ECONOMY , in a permanent manner , without ever needing any other stimulus


There is no stimulus greater than the Human Greed !

( sources :


Don't Ask " How " ?  /                               07  April  2014 


White Holes of Black Money ?   /  03 June 2014 


What would happen ?  /    29   Sept   2017 


Better late than Never /    20  Sept   2019


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

WHY  IS  MY  LOGIC  CRUCIAL  ?

Because it is the only way to achieve our target of $ 5 TRILLION economy by 2024 , since it is guaranteed to set in motion that VIRTUOUS  CIRCLE


I hope Shri Modiji finds a few minutes, to read my suggestion

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

29  Sept  2019

Rsvp :  hcp@RecruitGuru.com

Thursday, 26 September 2019

Thank You , Narendrabhai :





Thank you for telling the Business Leaders of America in your yesterday’s closed door meeting in New York :


“ Prime Minister Narendra Modi on Wednesday suggested that individuals have ownership of
  their personal data……


  During the closed-door meeting, Modi said that in future citizens would decide how they
  want their personal data to be used, including the possibility of opting to monetize it, but
  the government has not decided on the issue yet ………… 


source :




Through such an unambiguous announcement, you have established the following inviolable fundamental principles concerning PERSONAL DATA :


#  Every individual is the ultimate OWNER of his personal data


#  He – and only, he alone – can decide ,

Ø   WHO can use this data
Ø   WHEN can he use it
Ø   WHAT purpose can he use it for
Ø   HOW can he use it


#  Individual will decide the VALUE of each element of his personal data and will be free to
    monetize that value , by agreeing to SELL it for a price to anyone who wants to use his
    data





Dear Narendrabhai,


Your just announced principles are fully supported by none other than Tim Berners Lee – the person who invented the Web, who says :



Solid changes the current model where users have to hand over personal data to digital giants in exchange for perceived value.

As we’ve all discovered, this hasn’t been in our best interests.

Solid is how we evolve the web in order to restore balance - by giving every one of us complete control over data, personal or not, in a revolutionary way.

Solid is a platform, built using the existing web. It gives every user a choice about where data is stored, which specific people and groups can access select elements, and which apps you use.

It allows you, your family and colleagues, to link and share data with anyone. It allows people to look at the same data with different apps at the same time




Unfortunately , Solid does not enjoy acceptance or support from any government



But nothing stops the Indian Government to come out with its very own, ONLINE DATA CUSTODY / USAGE / MONETIZATION platform for its citizens, whose detailed operation I have explained in my following earlier E Mails :

Privacy For Sale                                                            [ 26 Aug 2017 ]

Digital Dividend from Demographic Data  [ 4 D ]                               [  14  Feb  2019  ]

( Extract from this email :

 

How much should we charge the Purchasers for record of each user included in the download ?

Rs 50 / =


How much do you think an user might earn per month from this arrangement ?

Assuming , his personal data gets included in 1000 downloads per month , he could end up earning Rs 50,000 per month !  ( a Universal Basic Income without burdening exchequer  )

 

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



To implement what I have suggested , is no rocket science . 



Given a challenge, any Indian Startup can develop such a platform in 6 months !



In the same New York meeting , you had also remarked :


“  The economic reforms that we announced in the past 4 months, is just a beginning . In
    the months and years to come, you will see many – and much bigger – decisions “




Dear Narendrabhai,


I urge you to set an example to the entire World by ,


Ø   Converting your announcement into your much bigger DECISION


Ø   Direct MeitY to implement it within 6 months



For complete list of 41 Emails sent to Cabinet Ministers earlier on this subject , refer :

Data Privacy Law : a Pandora’s Box ?                                       [  15  July  2018  ]



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

27  Sept  2019


Rsvp :  hcp@RecruitGuru.com

Wednesday, 25 September 2019

Quick Decisions ?





Today’s Economic Times carries following news :



Extract :

#   Union minister Nitin Gadkari made a strong pitch for quick decisions by the judiciary,
     banks and the government along with immunity from punitive action for bona fide errors
     to help accelerate economic growth, create jobs and combat poverty.


#  I am okay with people taking wrong decisions, but I dislike honest people not taking
    decisions,” Gadkari told the panelists and the audience


#  Further, Gadkari said bankers need to act quickly while the government should
    encourage them to take decisions without fear


#  He called for stern action against mala fide actions. “But you have to find out if the
    mistakes are bona fide or mala fide. If there’s a problem because of business cycles, or
    global demand and supply, we should not make them (the bankers) responsible. It’s time
    for the government to support them,” Gadkari said.


#   This over-cautious and conservative attitude is a problem,” he said.

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


Dear Shri Gadkariji,


It is easy to understand your frustration at this “ over-cautious and conservative attitude


The reason behind this attitude is :

No honest decision-taker wants to stick out his neck – only to get it chopped of , a few months / years later ( of course, after due “ witch-hunting “ by CBI – ED – CVC etc ) , for a bona fide and honest mistake


This attitude can be changed by implementing my following E Mail :

To Err is Human            [  20  June  2014  ]

Extract :

To encourage Babus and Ministers to take FAST decisions , PM  Narendra Modi must insist that they carefully " Record " on the files :


*   What info / data he wished was available for a better decision


*   What different " views / opinions " were presented to him for consideration


*   What " Data / Views " he would have obtained if he had more time


*   Who all , the decision might offend


*   What is the likely " Cost " of postponing that decision




And finally a declaration as follows :


THIS DECISION IS NOT LIKELY TO BENEFIT ANY OF MY NEAR RELATIVES / FRIENDS ,
  DIRECTLY OR IMMEDIATELY “
 

After all of this , if the decision appears to be " Wrong " in hindsight , it must be " forgiven " and treated as an honest error


To err is human  !

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


Dear Shri Gadkariji,


If  you propose to implement my above-mentioned suggestion , I am sure , you will find total support, not only from Shri Modiji, but also from all the bureaucrats


Here is the proof :


Only yesterday , in a conference of American Business Leaders in New York, Shri Modi said :


  The economic reforms that we announced in the past 4 months, is just a beginning . In
    the months and years to come, you will see many – and much bigger – decisions “



And 2 years ago, Shri Modi had said in a meeting of the bureaucrats :


 “ If a decision is taken with honest intention truthfulness and for the welfare of the
   public, nobody can raise a finger at you


   Something momentary may happen , but I am with you “

 

Source :

Take decisions fast, don't fear consequences: PM Modi tells bureaucrats  [  22 April  2017  ]



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

26  Sept  2019

Rsvp : hcp@RecruitGuru.com