The present government at the centre run by BJP combine, headed by Sri Modiji is doing a commendable job in many fronts, includingpower generation, infrastructure development, foreign policy, developing trust with the neighbouring countries and now unearthing black money.
The present government which is not even three years old is able to achieve few important milestones like opening 22 crore bank accounts in various branches of nationalised banks, depositing directly the subsidies to the beneficiaries , regulating payments to labourers coming under MNREGA, and unearthing 4 lakh crores of black money which will fill the coffers of the government.
But with all these progressive decisions, the government is unable to effectively deal with corrupt people who are occupying key posts in several departments like customs, excise, electricity boards, registration offices, sewage and water boards, pollution control boards, sales tax offices, income tax offices etc.. How to curb the menace of corruption and how to lead a reasonable life in India is everybody’s question.
There are few people who suggest formation of a ‘sena’ which will effectively deal with the corrupt people including politicians and bureaucrats, probably an ‘Anti-Corruption Sena’ (ACS) headed by few lawyers, judges, policemen and bureaucrats with clean records. They can find ways and means including force to deal with the ‘receivers’ as well as ‘givers’
Now, the government can also try few methods to curb generation of black money by adapting the following in each of the field
Goods and services tax (GST)
At present the government is trying to identify as many products as possible and bunch them for a particular tax rate. This is a cumbersome process. Instead the government can identify the segments, like automobile, textile, chemical industries, aeronautics, IT sector etc. and tax the products according to the segments to which these products will be supplied. The idea is to reduce the confusion relating to tax structure and thereby reduce the corruption (harassment)
A maximum of three rates of tax can be considered for implementation- 1% for agricultural produce, 5% for high volume sector like automobile & jewellery, 9% for the rest. A special rate of 16 or 25% can be considered for alcoholic beverages, cigarettes and cigars segment. Since departments like excise, sales tax, service tax and octroi are getting merged the scope for corruption comes down drastically.
There is concerted effort to widen the tax net. If the government looks at the scene of cash transactions, the possible defaulters are noticeable. They include doctors, pharmacies, departmental stores, taxi and auto drivers, consultants and purohits. But at the same time government must organise ‘quality’ income tax collections to avert any adverse comments from the common people
There are few people to suggest that government should abolish income tax and instead make “Bank Transaction Tax”(BTT) compulsory.
In the present context, the government can increase the income tax limit to 5 lakhs and remove all exemptions. It can also opt for just four slabs of income tax
0 – 5.0 Lakhs – Nil
5.0 L – 25.0 L – 10%
25.0 L- 1.0 Crore – 20%
1.0 C – Above – 25% or 30%
The government can also revise the following to more acceptable tax limits
Corporate Tax – 10 or 12%
Capital Gains Tax – 10%
All these will help in the circulation of the money and thereby increase the economic activity
While appreciating the bold move of the government in demonetising Rs 500/- and Rs 1000/- notes, there are people who find fault with the introduction of Rs 2000/-. The government in its haste introducedRs 2000/-, but it should recognise that it has to go the entire distance if it has to tackle black money. The next possible move by the government is to announce that Rs 2000/- notes will be withdrawn from circulation from 01/01/2019. Instead new Rs 200/- notes will be introduced. And also Rs 500/- notes will be removed from circulation in 3 to 4 years and adequate notes in the denomination of Rs 200, Rs 100, Rs 50, Rs 20 and Rs10 will be provided. To maintain an element of aesthetics Rs 200 and Rs 100 can be of the same size and Rs 50, Rs 20, and Rs 10 can be of smaller size. The higher denomination notes can have ‘Rama Pattabhishekam’ on one side and the lower denomination notes Lord Ganapathy’s depiction
Ultimately our country will have Rs 200/- as the highest denomination
Registration of documents
This exercise comes under state governments. But to have consistency across India, central government should impress on all state governments to impose not more than 2% registration charges on the market value of the property. If any double documents crop up, respective registrars should be held responsible . The loss of revenue may be shared by both the governments.
The entire registration and the release of documents may be completed within 4 working days. If it exceeds the time limit, the authorities can be questioned and suitable action taken against the registrar/sub-registrar. This way the government can curb black money generation on the desks of registrars and sub-registrars
Driving Licence/ Vehicle Registration
The entire procedure can be privatised and the department can be entrusted to auto giants like Tatas, Maruthys, Mahindras and TVS. These giants know how to professionally run the department. The corruption can be erased from this department