Arthkranti Sansthan to PM Modi: It is sought that after introduction of demonetization of Rs 500 and Rs 1000 notes, PM Narendra Modi might introduce a “no tax” rule.
PM Modi has vowed to make India a corruption-free economy and towards this goal, demonetization was his first move.
Suggestions by Arthkranti Sansthan to PM Modi –
It was suggested by Pune-based Arthakranti organization, a group of members comprising of Engineers and Chartered Accountants. The organization was given 9 minutes to speak to PM Modi about their plan, however, the PM found their thoughts worth listening to and kept on listening till 2 hours.
The Arthkranti Sansthan told him that if this plan is executed successfully, then India will become as developed as the United States.
They said that it will be introduced in two parts.
Part A –
- Introduce demonetization, scrap all the old notes of high denomination i.e. Rs 500 and Rs 1000 notes.
- Then introduce new notes of denomination Rs 500 and Rs 2000 to the economy.
- The individuals will be asked to deposit all the scrapped notes in a time period of 50 days and with this, Rs 15 lakh crore will be deposited into the banks as estimated by the organization.
The part A of the advice given by the Arthkranti organization has already been implemented and will extend until 31 December 2016.
Part B –
- Reduction of interest rates on savings accounts from 4% to 2%, on fixed deposit account and home loan interest rate reduced to 7 to 8%.
- Income tax will be abolished for the individuals.
- Goods and Services Tax will be implemented by 1 September 2017.
- A new tax will be introduced called the Banking transaction tax.
- The corporate tax rates will also be drastically reduced.
The part B of the proposed plan will be implemented in 2017 as it is expected that by then the financial crunch in the economy will be overcome and the reduction of the interest rates will then be possible.
The real estate sector will flourish and the intended property buyers will be benefitted. Since the government will not collect the income tax, the administration will be run through the Bank transaction taxes that will be introduced in 2017 and will be covered for all bank account transactions and for all individuals.
This plan is deemed to bring about a revolutionary change in the Indian economy. As per the estimated and expected results, the competitiveness of Indian market will grow, product prices will come down and henceforth, the consumer will be benefitted.
This plan as suggested by the Arthkranti Sansthan to PM Modi is expected to be implemented by the government. However, no official confirmation has been received from the Modi government.
