Is Modi planning to scrap income tax

Is Modi Planning to Scrap the Income Tax Completely??

As we all know that Modi 2 days backs announced the demonetization of 500 and 1000 rupee notes to curb the menace of black money. Anil Bokil who gave the idea to Narendra Modi about scrapping of high denomination notes, belong to an think tank called the ArthaKranti  Sansthan which is a Pune based economy advisory board constituted by a group of charted accountants and engineers.

Arthkranti proposal which was submitted to the finance ministry and PMO received a lot of appreciation which made Narendra Modi to call Anil Bokil for a discussion. The proposal given by the Arthakranti group is said to be a very feasible and practical for a economy like India. It guarantees a solution to the black money problem, price rise, inflation, corruption, fiscal deficit, GDP, industrial growth, terrorism and ultimately good governance.

The proposal includes:

Scrapping all 56 different taxes including the painful Income Tax, except import duty.
Scrapping all currency notes with denominations like 1000, 500 and even 100.
All heavy amount transcation must be made only through DD, cheque, online or electronic banking system.
The maximum amount of cash transaction should be fixed.
The givernmnet should introduce single point taxation system through banking system (transaction tax from 2% to 0.7%).
WHY ARE THESE IMPORTANT

According to statistical report, in India accounts over2.7 Lakh transactions per day and 800 crores annually. But less than 20% of the transaction takes place through banking system and another 80% of transactions is made through cash which is totally un traceable. According to a survey, the Indian population spends on an average of Rs 20 to Rs 50/day, so why do we need a Rs 1000 note?

So what implication will the society have if all 56 Taxes are scrapped??

Consider an official or a salaried person, he would definitely bring home more money, which will increase his capacity of spending and investments.
All commodity rates would drastically reduce, especially petrol and diesel will be reduced by 35-52% which will reduce the petrol prices to Rs 25-30/lt.
There will be no option for tax evasion, so there will be no question of black money generation.
Business sector, start-ups and entrepreneur sector will be boosted and people would invest generously in business.
Banning High Denomination Currency Notes

Using cash for high amount transaction will be completely stopped.
There will be no chance for black money generation since no one would have the time and patience to pay huge money in 10s and 20s.
The main reason behind the skyrocketing prices of properties is the black money market. Jewellery, land, house are all bought using black money in cash. So banning high denomination notes will reduce the prices by more than half. People will not be able to buy property for high value showing low registry prices.
Terrorists who receive huge funds through cash will be stopped. Kidnapping for money, harassment, bribery will all be stopped.
Circulation of fake currency will be stopped, as fake currency printing for low value notes is not feasible.
As of now, the total amount of tax collected accounts to less than 3,000 crore which is not even qual to one year budget of Indian army, where as scrapping Income tax will generate more revenue as people will invest more. The government need not have separate Income Tax department which would save huge money.

If these measures are taken rights away….Prices of all goods and commodities will come down drastically, salaried people will get more money in hand, purchasing power of people will be doubled, demand will  be boosted which will simultaneously increase the industrial production resulting in more job opportunities.

The government will get huge revenue which can be well utilized. People will get cheaper loans and interest rates will be down. Society will be freed from all burdens and anti social elements, robbery and theft will reduce completely. Prices of land and all properties will come down.

It has been said that the government has considered these suggestions seriously and are planning the options for implementation. So there is a possibility that some of these reforms will be implemented at appropriate time.

The economy will be definitely boosted and the Indian Rupee will gain huge value in the global market. More than anything, politicians will have no chance to stack thousand of crores illegal money for votes. It will overall clean the society.

It is not impossible to change India, right approach and by addressing the root cause of the problem we can definitely free India from the decades old problem of corruption. Simple steps can make big impact, all we need is the will to make India the Global Power!