What is going to be government’s next move?
Six months back, the economic think tank from Pune Arthakranti Sanstan submitted a very insightful policy blue print on the steps to be taken to address the Indian economy. Following this, Narendra Modi called a person called Anil Bokil to discuss the proposal in detail. The Prime minister who was inspired by the overall plan extended the talk up to 2 hours. He was the same person who had given the proposal to ban the high denomination notes of 100, 500 and 1000 rupees.
Ever since Modi announced the demonetization of old notes, Kashmir saw no violence, the stone pelting incidents declined drastically since 5 days and the naxals-Maoists activity in the country has fallen greatly. These issues were destroying the country since decades, we almost thought there can be no solution to the problem.
But one move by our total badass Prime Minister has shown how black money is directly responsible for all the problems of terrorism, corruption, price rise and inflation.
Mr. Anil Bokil had listed out 5 important points in his proposals:
- Scrap all taxes, including INCOME TAX, except import duty.
Cancelling all currency notes of higher denominations like 100, 500 and 1000.
All heavy amount transactions MUST be made through DD, Cheque and online banking system.
A cap should be put for the maximum amount of transaction through cash.
The government should introduce single point taxation system through banking system.
According to few reports, the Prime Minister has taken the issue of scrapping the income tax seriously and is looking to chalk out the strategy to implement the new policy. It is being anticipated that the financial year which usually starts from March-April will be shifted to Jan-Feb from the year 2017. So, the government may scrap the income tax from the FY 2017-18 and replace all taxation system through BTT (Banking Transaction Tax) from 1 April 2017. This announcement will be probably made on 31st December.
So there is a possibility that the country in future will be paying just two types of taxes:
- Direct Tax as BTT (Banking Transaction Tax)
GST (Goods and Service Tax) as Indirect Tax.
If implemented, this will be one of the ground breaking economic reforms of the country.
[Credits – postcard.news]