Demonetisation of 500/1000 Rupee notes is certainly a big blow to black money. But generation of black money will not stop unless there is improvement in govt working.The govt rules and regulations and unnecessary controls are to be curtailed. This is also the reason for bribes in govt offices. Reduced taxation may also greatly improve the economy.
Re: black moneyand corruption
by MNN on Nov 10, 2016 01:55 PM
Everybody blames the system, the govt, the officers, external system, swiss banks etc, but the biggest committer of crime is WE , OURSELVES . If i stop the practise of giving bribes to serve my narrow minded practises & if everyoneof us refrain from giving & taking bribe, will black money be there. Who will bell the cat .
We do not need Rs 2000 or 1000 notes. This will again give rise to black money. We need only Rs 100 mostly and few Rs 500 notes and we should use netbanking or debit card for big transactions. D Sircar
I am not convinced about the abolition of taxes or keeping the rate at 2% when the current rates are as high as 20-30%. There is no two opinion that tax rates need to be reduced from the present level & increase the number of tax payers.
It may be true that large population survive on less than $2 per day but are seeking employment from those who deals in money now defunct.This will be a catastrophic impact on an already limping economic activity.The better option was to cut currency printed before 2015 & rest be taken out in 6 months duration to allow less hardship to people.
Why it is not planned by this weekend saturday & Sundays. If they would have distributed currencies on Saturday & Sunday and scrapped 500 & 1000 on Sunday night .We would have avoided these kinds of rushes and crises for non availability of currencies..
Would it not be more effective if high denomination notes are permanently banned or at least up to the period given for replacement/ deposition in bank? This would have prevented, those who possess huge amount of black currency, from replacement of old with notes with new one (may be by loosing some margin). No genuine financial transaction would affect if high denomination notes are permanently banned. Instead, it would encourage transactions by electronic mode.In fact currency is required for daily purchases and in rural areas. Here neither big amount nor high denomination notes are required. Who require thousands & lakhs for their daily spending can conveniently use cheque, card or any other electronic means of payment. So govt need to think on this.
For withdrawing smaller amount restrcited by givernment,, And for the Changes of Currencies..,every bodies are forced to use ATM.. Is the ATM Charges remain same for withdrawing money at this stage ? Or same? In this case, for every transactions, Bankers will charge between rs. 17 to 22. It's huge ...
Wonder how 2% tax would replace everything else including the state revenues. It is a bit confusing, but rediff would do us a favour if it could bring out a brief article on this proposal. While I am skeptical about the elimination or even reduction of black money, it is indeed the first step. Let us wish Modi Government the very best in their endeavour of surgical strike on black money
Re: 2% TAX?
by khanna koushik on Nov 10, 2016 11:34 AM
The 2 % of the tax will be imposed on every transaction flatly. Today only 20% transaction are taxable as they are traceable, rest are black. So imagine the revenue a small 2% tax can generate when 100% of transaction are tracked !!!! Its a miracle that we are looking after....
