Mr Narendra Modi has already taken the most difficult and shocking decision to tackle the issue of black money, corruption and fake currency notes in India. Hence, all his future shocks would not be felt as hard as his move of demonetization had been.
You can expect following additional steps from the Prime Minister to take the issue of corruption and black money to the logical conclusion.
- Mapping of all real estate in India digitally by identifying the owner of every single land or property. Confiscation of all benefit property
- Confiscation of all property which has been acquired using corruption money or black money
- Ceiling on keeping cash at home or at business premises
- Making Compulsory all transactions beyond Rs 10,000 through electronic modes
- Making Compulsory all the payments from employers to employee through banks
- Compulsory intimation of all real estate transactions to Income tax department.
- Empowering Income tax department to buy the property at the declared rate plus 10% premium from the seller within a month of the sale
- Making income tax evasion a criminal offence
- Incorporating provision of arrest and prosecution in Income Tax laws for suppressing income beyond a specified limit
- Incorporating stringent penal and arrest provision in Indirect laws like Customs and GST
- One time declaration of all movable and immovable assets by all citizens of India having assets beyond the specified limit
- Impose 1% of Democracy Cess on all Central Taxes, including GST, to finance the expenses of the political parties during elections
- Conducting simultaneous elections for Lok Sabha and Vidhan Sabha once in five year.
Edit: I wish to explain the benefit of point 7
Suppose someone sell property of Rs 1 crore for just 50 lakhs. The IT department can purchase the property for 55 lakhs and sell it to the highest bidder. This will fetch extra revenue of Rs 45 lakhs to government and thus stop undervaluation and generation of black money.
Knowing Modi as we do and seeing his track record, I don’t think that anything that he does will shock me. I hope that he does following shocking things in days to come…
- Create electronic data center for keeping track of all property (including land-both agricultural and non-agricultural, buildings and forests) linked with GPS.
- Table Gold Ceiling Act through which nobody can keep more than some amount (say, 1 kilo) of Gold per head. This will help curb further black money.
- Recreate/Clean voter’s list. Maybe do away with voter-id and introduce the use of ATM cards/Aadhaar cards as voter-id. Use of ATM cards would be wonderful since nobody is going to give their ATM card to somebody else for voting. This will end election riggings to a great extent. Deduct Re 1 for voting. This will further ensure that nobody votes more than once using same card!
May God keep him alive long enough to surprise us again and again !!!
I think it is important to note that Modi’s move always have a utilitarian and a political angle. While he does things that are good for the country he also keeps in mind that doing more such things requires power - so with each move he also figures out a way to maintain or increase political power.
There are a few moves that fall in the category of being path breaking, being good for the country and being good for BJP / Modi. These are:
- Make voting compulsory. This ensures that the “lazy” middle class goes out and votes - and most of them would vote for BJP.
- Bring Uniform Civil Code. If properly implemented, this would pitch Muslim women against Muslim men. Even if 25% of Muslim women start supporting BJP, it increases BJP’s votes by 15% and reduces those of its rivals by an equal amount. Further, Uniform Civil Code is unlikely to reduce votes anywhere else.
- Go after political rivals. BJP needs the regional parties to fight between themselves as otherwise a Bihar like result may come up. However, as BJP’s voteshare increases, it may try to eliminate some of the regional parties. Prime candidates are the SP, BSP, NCP and the Shiv Sena.
- Increase pressure on China. With the election of Trump, a 4 way coalition between US, Russia, Japan and India is very possible against China, North Korea and Pakistan. US would be happy to “cede” middle east to Russia just to get rid of the mess they have made there. With China thoroughly encircled, India would turn up pressure on China to isolate Pakistan. Expect the Uyghur and Tibet issues to be highlighted.
- Modi may announce abolition of Income tax.
- Modi may announce reduction of taxes, after studying the performance of GST for six months or one year.
- Modi may announce extending bullet train connecting most parts of the nation.
- By making registration of properties transparent, he will make life for corrupt very hard.
- Modi may abolish capitation fees once and for all.
- Modi may reduce the interest on loans to half of what it is.
- 100 Smart cities which he promised will start taking into effect.
- Modi may destroy all the terror camps in Pakistan, with or without the help of US and Russia.
Pl see: Thanks for all the comments. I arrived at these points after going through many reports. Though it looks utopian now, I feel is realizable. Thanks once again for all the encouragement.
If we see how Narendra Modi feels about the nation and it's history we can sense his means to achieve his vision of India which stands tall with dignity.
He understands that more government means more bottlenecks and means of corruption.
Does anyone think that the enforcement agencies would have been able to get anywhere near the big hoarders? If they were empowered or ordered to do so it would only create severe temptation in a bureaucracy which has got so used to corruption as standard practice over the decades.
The next major painstaking exercise would be to implement means of transparency in dealings with the bureaucracy so as to identify the bottlenecks and the parties responsible.
All Indians will have the chance to be part of the economy when means of indirect taxation are spread across all activities. The transactions will largely be cashless requiring NO wisdom or decisions from the bureaucracy.
Many suggestions have been made. I guess the ones that meet the criteria of less government will be first to be implemented .The sprawling bureaucracy will have better things to do then negotiating the fees for placing their stamp of approval.:)
Not shocking but following few things seem practical and inline with current moves
1.Making it illegal to hold more than Rs200000 in cash and banning cash transactions above Rs 30000.
2.Restructuring income tax , for example, abolishing all slabs and single 25% rate for income above Rs 10lakh
3. Making it mandatory for all the people above age 14 to file income tax return.
4. Nationwide scrutiny of all property deals. Also, a new gold disclosure scheme with an option to convert into digital gold.
5. Completely abolishing subsidy on kerosene.
6. Implementing Uniform Civil Code and some solution for Ram Mandir issue.
7. Simultaneous elections for states and Centre or at least in two stages and some political funding reforms.
8. Creating a new country, Baluchistan.
9. Merger of some PSUs to create some big sustainable companies.
1.Making it illegal to hold more than Rs200000 in cash and banning cash transactions above Rs 30000.
2.Restructuring income tax , for example, abolishing all slabs and single 25% rate for income above Rs 10lakh
3. Making it mandatory for all the people above age 14 to file income tax return.
4. Nationwide scrutiny of all property deals. Also, a new gold disclosure scheme with an option to convert into digital gold.
5. Completely abolishing subsidy on kerosene.
6. Implementing Uniform Civil Code and some solution for Ram Mandir issue.
7. Simultaneous elections for states and Centre or at least in two stages and some political funding reforms.
8. Creating a new country, Baluchistan.
9. Merger of some PSUs to create some big sustainable companies.
- All the nameless (benami) property holders will be scrutinized and it will be compulsory to declare all your real estates.
- Upper limit for holding gold per person will be decided. Anyone holding excess gold till now will have to declare everything. From now onward, tax will be applicable for holding gold more than a threshold value.
- Lending rates by the banks will be decreased drastically.
- Taxes on various things will be curbed. Taxes will be majorly on imported items in order to facilitate “Make In India” campaign.
- No Tolls on national highways. From 8th Nov 2016, the deadline has been extended week by week. May be Modi will curb toll charges for lifetime.
- All the higher denomination notes greater than 100 will be curbed. (Even the new Rs 2000 notes and Rs 500 notes will be curbed soon)
- Rural Electrification projects will be started on a large scale.
- The aim to have 100% coverage through mobile phones will be practiced by taking major steps.
- Along with Jan Dhan Yojana, all the people of the entire country will be requested to have bank accounts and facilitate use of debit/credit cards as well as internet banking for making various payments.
The last wish which will be totally surprising and most unexpected will be “ All the seats in the college, All the posts for government jobs, will be completely filled on merit basis. Reservation will be curbed for admissions. Fees deduction will be applicable as it is now and Financial aid will be provided for the people who are in actual need irrespective of their castes.
- We should definitely expect Sh Modi to announce a ‘Unified Election Fund' in which all the cash and assets in hand of all the political parties will be got deposited. All the candidates contesting an election will then be given an equal amount from this 'Election Fund' to meet expenditure to be incurred by the candidates on such an election.
- We should also expect that all donations to political parties would be banned. Whosoever wishes to contribute in the election expenditure would be allowed to send donations to the above said 'Unified Election Fund' only.
- If the above said steps appear to be too harsh for the political parties, then at least Shri Modi should make it mandatory to make all political donations in a cashless manner with a proper record of all the donors available in public domain.
Aaah! If dreams had wings…
- Reduction in income tax or complete abolition in phased manner. Only 2 taxes Bank Transaction Tax, and GST. This pre supposes the limitation in expenses being allowed for business beyond a particular amount, introduction of electronic or digital cash for conducting business, higher vigilance in Tax regime and compliance.
- Give teeth to Benami Property Act that came into force on November 1, 2016.
- Transparency in administration. May be he would insist on Body cams for police and adminstrative officers when they are conducting business.
- Restructure the education: Today education system has lot of inconveniences and capitation fees still does not prepare the students for the tomorrow’s work and enterprise. Although he may not ban these private education would put in more stringent measures to follow for them to educate and as well bring in common skills they should aim at. Although this is very difficult due to state differing from them. So his strategy would be on the qualification recognition and certifications.
- Justice to be hastened: He would act on the reforms in ensuring the cases are duly settled in a particular time frame in each court rather than taking enormous time.
- Elections to held at the same time for state and central.
It might not be shocking for PM modi because right now he is just waiting to reap the benefits of demonetization.
- There will be increase in tax revenue of the government , the no people accounting for tax collection might increase unexpectedly . The Governmemt will either reduce tax burden on its people or will increase its planned expenditure at certain folds.
- Due to internal black money getting trapped and the RBI returning its assets to governemnt , the government fiscal deficit may come down in longer term , the government may need not to go outside for borrowings for their agricultural development schemes and there might be possibility of a larger railways infrastructure development .
- PM modi can increase the cashless transactions to include unaccounted sales and ensuring less tax evasion and a support to gst based inflation .
- PM modi dream of 100 smart cities will not take longer to complete due to large infusion of funds .
Well these are just my speculations and you can only predict the governemnt not our Prime minister .
This answer is intended for pun , so take it & read it lightly.
1.) Surgical strike on property - After black money, benami [nameless] registered land will be seized by government
2.)Surgical strike on cars - to overcome uncontrollable pollution.
3.) Ban on engineering colleges - So many unemployed engineers , roaming around. He may put a cap on these. :D
4.) Ban on reproducing kids - India is the world 2nd largest country . PM may announce a policy for family planning . PM may enforce every family to have only one heir .
- Another Surgical Strike on Terror camps in pakistan.
- CAG audits on UP election promotional expenses by political parties.
- Abolition of Income Tax.
- Lifetime Ban on IRF Jakir naik’s Islamic research Foundation.
- Taking Black money back to India.
- Invite Donald Trump for Republic Day as He invited Obama last year.
Read lots of answers, i am restricting myself in respect to current scenario and these may be the logical steps forward.
Since we know by 30th Dec most of the cash would be in bank. To reduce withdrawal and prevent further black money generation he may announce all this on may be 31st Dec.
- Restriction of accepting payments in cash with a threshold limit of may be 50K, this will automatically ensure your Pan Card/ aadhar being flagged by your spending pattern. This will also ensure you do not need large cash withdrawals and hence less currency.
- Changing financial year to align with international practice 1st Jan to 31st Dec. So less time to make adjustments and work on entries given in cash transactions in current financial year.
- Implement of GST along with changed financial year (if the back end tech is ready). Ensuring all transactions post 1 January are more tractable.
- Property needs to kind of dematerialised (Demat) like a commodity before making a new transaction. This will ensure all transactions going fwd would be 100% digital and traceable, and backward traceability can be generated. More transparency in actual transaction value and would help them get more realistic in the Guideline values pushing people to may complete white money for all transaction.
There would be various tracing mechanisms in place like all people who moved their cash in gold or property would be receiving payments in cheque only (when they are out again to sell in next 1 year) and will have to pay capital gain tax and transaction could be traced to their asset value and backward calculation of assets hence opening past wealth tax evasion.
Your sudden spike in sales / profits (which will be due to more of digital payments on account of demonetization and GST both, in coming financial year) would make the new GST inspectors open your books of past few years and check on various tax evasions.
Tech can be used in many ways to track things once data is there. transaction via bank only (for a certain limit) would definitely make that happen.
On Vote bank side.
- Banks (SBI can be pushed to do so) will automatically lower interest rates due to 4 times more cash to give as loans. This will mostly help the low cost housing “The aam adami” in coming months.
- Income tax slabs can be increased significantly due to much higher compliance of income tax giving relief to the people at large from this budget itself (before state elections).
- GST rates may reduce probably from next financial year and before the next National Elections.
Shocking Move?
Its just a normal move but it will look shocking, since we never experienced it.
No one can predict what a Dedicated Leader can do for his country which made him feel sad about its situation of today, and more importantly he is aware that his country was the World Guru once upon a time and it’s been fooled to be a developing country from long years after British Company left India.
If you can support him if he do something which makes you feel it really helps our nation in some way,
He can’t change everything in a night, Its our turn to support the one who is performing well as we dreamed always, so let us support him for our dreams come true,
Every person will have his own opinion about his next move but i can tel only one thing,
“He will surely give us a Chance to build our nation of our dream unlike others who Ruled till date who used to decide themselves what India Needs”
(Free Rice, Subsidies, Free TV’s, Laptop etc for votes were what people used to get instead of Purification of our corrupt System, development, Empowerment of Common Man, Value for common man’s Hard work)
Don’t you feel he is thinking for a common man ?
Don’t you feel he is feeling the same what a common Man is feeling today?
Don’t you think if a common man would have got a chance to rule our country for a day he would have done the same ?
Don’t you feel he is involving the common man in every step he taking to Reform our Country?
He will give us a Country for which we can feel proud about - if everything goes right,
If at all - If not, then at least he won’t make us to bow head with shame in front of other countries like before.
Thank You
0 comments:
Post a Comment