When the Lok Sabha reconvenes this morning , expect fire-works
!
12 opposition parties , led by Congress , will shed
crocodile tears to show their sympathy for the difficulties / harassments /
pains suffered by millions ordinary
citizens since demonetization announcement of 08 Nov ." They have lost
their livelihoods ", they will say
With forthcoming elections in UP - and 4 more States -
, how can they afford to miss out such a golden opportunity to attack the
government as being " Anti Poor " ?
Government will argue that ,
* Things will
return to normal in 8 / 10 days
* Already Rs 5.5
lakh*crore worth of Rs 500 / 1000 notes have been deposited in bank
accounts . By March 2017 , this will exceed Rs
10 lakh*crore . Balance of Rs 5 lakh*
crore will
get burnt or dumped into rivers
* Next ( after
30 Dec ) , we plan to attack all Benami Properties where Black money is
locked up (
for which , it was essential to maintain , utmost secrecy )
But , all of these valid arguments will get drowned in the
din !
However, there is a surefire way in which the
Government can silence the opposition
By Prime Minister announcing the following in Lok Sabha
, at the very outset
( suggestions which, I sent to NDA Ministers through emails
shown below ) :
# Email date :
01 Oct 2015
* Abolishing Personal Income Tax
( source of the DARKNESS of CORRUPTION )
* Stop asking any questions as to the "
Source " for all cash deposits
made into bank accounts opened
under Jan Dhan Yojana
* Levy a Bank
Transaction Tax ( BTT ) of 2 % to yield revenue of
Rs
15 lakh*crores , which would be 5 times the loss of revenue due to
abolition of Personal Income Tax
* Encourage deposits made into Jan Dhan bank accounts to be invested in
SOLAR POWER SPV Farms , by direct
depositing of income derived (
from sale of electricity to
DISCOMs ) into those bank accounts
# Email date :
22 Sept 2015
* Enact " Start Up Act - 2015 "
* Abolish Personal Income Tax for Start Ups registering on
web site of
Income Tax department ( must file ZERO TAX return
for 10 years )
* No questions asked re source for all investments made in
Start Ups ,as
long as this cash gets deposited in the bank
account of that Start Up
# E Mail date : 18 Sept
2015
The only FINAL / LASTING solution is :
Abolish Personal Income
Tax
Simultaneously declare :
No questions will be asked for any amount of cash deposited in
bank accounts by individuals ( of course , with linkage to PAN / Aadhar /
RuPay card etc )
Sure , Government will lose Rs 2.5 lakh*crores by way of tax
revenue,
received from some 3 crore individual tax payers
But , Abolition of
Personal Income Tax ( and no questions asked re bank deposits ) , could
lead to 30 crore persons , each depositing Rs 1 lakh into their bank accounts !
{ Not unthinkable ,
considering that during past one year alone , Rs 20,000
Cr got deposited in 20 crore new bank accounts
, under Jan Dhan Yojana }
So , we are talking of bank accounts swelling by Rs 30 crore*lakh !
Even if that money earns the depositors , only 3 % rate of
interest !
And banks will give out these moneys as loans to Corporate @ 5 %
interest rate !
Trillions of BLACK MONEY Rupees will become " Productive Assets "
And , Corporate World ( + our Finance Minister ) would not need
to keep begging RBI for a " Rate Cut " to boost the economy
!
To keep growing at 10% rate , we have got to make ours , a :
LOW COST ECONOMY
# E
Mail date : 04 Jan
2015
* " Inverse Taxation Regime " both , for Personal Income Tax as also for Corporate Tax
The more you earn , the less tax ( rate on next higher slab ) you pay
* For Corporate , the more people you employ , the less tax ( rate on next higher slab ) you pay
* Even total abolition of Personal Income Tax
There are over a dozen Countries where there is NIL personal Income Tax
So , there is a precedent that this can work !
If Personal Income Tax was to be totally abolished , what can / may happen ?
* There will be no incentive for tax evasion / avoidance
This will be a permanent FULL STOP to future generation of Black Money
* 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
The more you earn , the less tax ( rate on next higher slab ) you pay
* For Corporate , the more people you employ , the less tax ( rate on next higher slab ) you pay
* Even total abolition of Personal Income Tax
There are over a dozen Countries where there is NIL personal Income Tax
So , there is a precedent that this can work !
If Personal Income Tax was to be totally abolished , what can / may happen ?
* There will be no incentive for tax evasion / avoidance
This will be a permanent FULL STOP to future generation of Black Money
* 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 !
This is the ONLY WAY , NDA government can redeem its promise !
* 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
This is the ONLY WAY , NDA government can redeem its promise !
* 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 ( VIRTUOUS CIRCLE ? )
* Savings will move from gold / land to Financial Assets
* With a low cost structure , our products / services will become , internationally
* 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 ( 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 ) should 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 )
* That will improve our current negative Trade Balance / CAD
* This ( abolition of Personal Income Tax ) should 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
SPVs , themselves , must not need to pay any taxes for 10 years
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Dear
Shri Modiji :
* Today
, is the time for your NEXT Surgical Strike / Master Stroke
* Take away the empty thunder of the Opposition
* Render
the Opposition " irrelevant "
* Forever
, silence your critics with these " Declarations of Intentions "
* Make 21st Century , the INDIAN CENTURY !
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16
Nov 2016
www.hemenparekh.in / blogs