The Pune-based Arthakranti Sansthan, an Economic Advisory body constituting of Chartered Accountants and Engeers has presented a patented plan, the ‘Arthakranti Proposal’ which they claim to be is “an effective and guaranteed solution of Black Money Generation, Price rise and Inflation, Corruption, Fiscal Deficit, Unemployment, Ransom, GDP and industrial growth, terrorism and good governance.”
The Arthakranti Proposal has 5 main points of action to be carried out simultaneously:
- Scrap all 56 Taxes including income tax excluding import duty
- Recall and scrap high denomination currencies of 1000, 500 and 100 rupees
- All high value transaction to be made only through banking system like cheque, DD, online and electronic
- Fix limit of cash transaction and no taxing on cash transaction
- For Government revenue collection introduce single point tax system through banking system – Banking Transaction Tax (2% to 0.7%) on only Credit Amount
If all 56 taxes (including income tax) are scrapped, salaried people will bring home more money increasing their purchasing power, and overall prices of all commodities and goods will become cheaper. Since there will be no taxes there would be no question of tax evasion.
Removing currency notes of Rs 1000, Rs 500, Rs 100 will remove any opportunity for black money as to give any large amount would require a large number of currency notes. All larger transactions would take place digitally, electronically and through DDs/cheques, all methods which are traceable.
Banking transaction account for more than 2.7 lakh crores per day and more than 800 lakh crores annually. If a minor Banking Transaction Tax (2% to 0.7%) is implemented, annually the government can earn around 16 lakh crore, as compared to the 14 lakh crore it is earning with the current taxation system. Also, the amount will go directly to the government instead of reaching the government from various tax bodies.