Let
me first clarify that I am neither for nor against demonetization. Though I am
not an economist, I still do not support demonetization as I believe it was not
planned properly & also because a lot of common citizens have been put into
needless trouble because of this. Also, while I agree that this step will
address a miniscule proportion of black economy, I still feel whatever that no.
is (2%, 5%, 10%), something is still better than nothing & we will end up
in a better state. And for this reason, I think this should only be the 1st
battle in the war against corruption.
But
now that the elections in critical states are round the corner the PM is
already busy with his electoral duties. So what happens when the banks are
tanked up with new currency & the queues at ATM’s & bank counters
diminish? To help him hit the ground running when he returns to office, here
are my suggestions to our PM for the next anti-corruption measures:
Ask
anyone in an ATM queue & he will inform you that the largest hoarders of
cash/black money are the builders. Usually, they take around 30% to 40% of
payment in cash form which may or may not be reported. I suggest, you exempt
40% of income of builders from income tax. As it is, you are not collecting any
tax on this income. Same for sale of house/property too. You would then
eliminate black money from the real estate sector in one shot. Which will
return to the legitimate monetary system as these guys would be able to spend
their hard earned money any way they like. Or they would deposit this money in
banks which have more funds to lend (as home loans too!), thus fuelling the
economy.
On
the same lines, I would like you to exempt government officials from paying
income tax. And not just because they are public servants doing public service
for public welfare. Because firstly, their salaries would increase
proportionately & they would have a lesser need to make ends meet by
accepting dole (or, what the common man calls Bribe) from the paying public.
Also because what the citizen pays these gentlemen is already taxed & as
these payments have no tax liability, it no longer will be considered “black
money”. Not only does this measure ensure life goes on as before, it also makes
the public servants a happier lot which may make improve the service they
provide (would they worry about where to dispose the cash?). Thus, a win-win
solution for all.
There
is another sphere of economic activity which works under the radar, known to
all though no one talks about it openly. Coming from Gujarat, I am sure you
would already have guessed it. Yes, I am speaking about bootlegging. These are
the good Samaritans who receive no appreciation but only harassment from the
official machinery. Even they should be exempt from paying income tax, because
their work is almost as important to the nation as those of the farmers. I know
this appears to go against the Gandhian principles which are so dear to us, but
this is not the case. When these spiritual service providers feel they have
nothing to fear about their wealth, they would hit the markets in a very
conspicuous manner. This would inspire the unemployed youth to take up this
profession, which would make it very competitive & unprofitable. There
could be more desertions than addition, probably leading the industry to look
at other avenues for business. Which is what Gandhi wanted.
Organised
religion dabbles mostly in cash, of all denominations. All temple trusts, waqf
boards, churches & the like should be forbidden from holding any bank
accounts or owning land. Because if they trust god why do they need banks for
safe custody of their wealth? And because god is omnipresent &
all-powerful, the land owners are just tenants of god (or his representatives)
& the entire land ultimately belongs to him/them. But babas & godmen
are not to be considered here, because they perform other important tasks too
such as producing movies, meeting parents of slain terrorists & throwing
MNC’s out of business.
I
would love to add another measure to the list above – No cash donations to
political parties. But I know this would not be acceptable to any political
party or politician. Also, if this is implemented any ordinary person can
aspire to be a politician, become MLA/MP & govern the states/country. This
is a scary thought & you know what I mean. You have quite a few of these
types in your vicinity who are also a pain in you know what. As individuals
& as citizens we cannot even self-govern. Just look at the chaos on the
road when there is no traffic police around (to give an example), and you will
understand what I mean. We need the politicians to rule (pls read this as:
formulate & administer laws) us, whether they mend their ways or not.
You
have highly competent people in your team who will come up with even better
suggestions. But whatever step you take next, pls see that it has a simple
name. Terms such as “demonetization” are too difficult to pronounce to have any
meaningful discussion at the tea stalls & we only end up saying “Bharat
Mata ki Jai”!
Good ones, Ashish!! Keep them coming...Cheers!! to the Gujarati spirit of enterprise (does bootlegging count as enterprise?)
ReplyDeleteBootlegging is as enterprising as it can get, and it also keeps the economy well-oiled!!
DeleteThanks for the encouraging words, these keep one going.