BJP looks at a tax-free regime | Deccan Chronicle
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BJP looks at a tax-free regime

DC | Sanjay Basak and Pawan Bali | 19th Sep 2013

New Delhi: In a so-called “bid to transform the current Indian socio-economic scenario” and “provide relief to the middle class while boosting the industrial sector”, the BJP is looking at a “revolutionary” five-point proposal to abolish all direct and indirect taxes (except customs duty to protect domestic markets), including sales tax, income-tax, excise duties, service tax, VAT and corporate tax, among others.

A think-tank, Arthakranti, had a series of meetings with the top BJP leadership, including L.K. Advani and Narendra Modi, to discuss the proposal. Even RSS chief Mohan Bhagwat has been briefed about the proposal. Instead of direct and indirect taxes, the think-tank has proposed to impose a tax of “say two per cent” on every banking transaction.

While the BJP leadership, which is preparing its “vision document”, is debating the proposal, the national spokesman of the think-tank, Deepak Karanjikar, claimed that “it will generate a revenue of Rs 15 lakh crore” for the government. The proposal, incidentally, will take at least three years for implementation if accepted by the ruling party at the Centre. A draft parliamentary bill has also been prepared for the “new taxation system” by the think-tank.

Some in the BJP are, however, sceptical about the proposal.

New tax proposal aims to reduce graft

As per the thinktank Arthakranti’s proposal to BJP leaders, the transaction tax on credit accounts will be shared by the Centre, states, local authorities and the transacting bank. High denomination currency above Rs 50 is proposed to be abolished. “Some 58 per cent of the population pays Rs 20 a day so they will not be affected by this,” said Mr Karanjikar.

Under the proposal, currency transactions will not attract any transaction tax. But, it is proposed, cash transactions above a level, say Rs 2,000, will be deemed illegal.

“If you buy anything, like a camera, above this limit in cash and if there is some problem with the product, you will not be able to enforce the warranty on it as the transaction will be considered illegal,” said Karanjikar.

The thinktank said that its proposal will bring more transparency and tackle the issue of black money.
 

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Comments

11
arunbab's picture
by arunbab (not verified) on
This will lead to more cash transactions and generate more black money.Gold, jewellery and other valuables which do not require warranty will be bought with cash.Abolishing all taxes except customs duty is a good idea but the alternate source of revenue can not be bank transaction tax.
GAURAV BHANDIA's picture
by GAURAV BHANDIA (not verified) on
That risk is fairly covered by abolishing currency notes above Rs 50 and other measures could also be put into process.
Abhishek Mangla's picture
by Abhishek Mangla (not verified) on
64 type of direct and indirect taxes have been forced on Indians ( most of these taxed were started by British ) ....are , we really independent ? We people are paying high taxes and we get nothing in the name of social security .... We welcome such thinking from BJP ....Reforms is what we need now.
yamaji malkar's picture
by yamaji malkar (not verified) on
Yes.... It is Real answer of our problems...want reformist leader
vivekanand.kola's picture
by vivekanand.kola (not verified) on
We have kill the criminal congress and supporting parties in India no doubt BJP will change India as super power under Modi vision. Please vote for BJP.
CA KRISHNAKUMAR's picture
by CA KRISHNAKUMAR (not verified) on
Good idea, more discussions are required. On proper implementation we can avoid black money, fake currency and even terrorism to a certain extent. Please appreciate the proposal.
papputiwari's picture
by papputiwari (not verified) on
This step with VDIS has potential to change India forever. It will kill black money, Duplicate Currency, Increase tax, decrease inflation indirectly and improve growth
T.G.Ramachandran's picture
by T.G.Ramachandran (not verified) on
Government machinery with their bloated work force with low productivity & corruption are the factors that need attention-it is eating away the cream of our tax revenue without much benefit to it's citizens!
M.G. Sathya Narayana's picture
by M.G. Sathya Narayana (not verified) on
The trust among person to person, Govt to Public has to be developed to encourage entire population of India think about National Development. More Tax, more Rules are created due to loss of trust in country. It is welcome revolutionary changes to boost Indian economy by abolish so many TAX.
BJP is THE PARTY's picture
by BJP is THE PARTY (not verified) on
Don't miss your chance, vote BJP
jarasocho's picture
by jarasocho (not verified) on
Certainly some out of the box thinking is required. Feudal type tax laws and the resulting corruption is anti growth/waste and inhuman. It undermines democratic process. Some loud thinking to find alternatives is imperative by the evolved people of twenty-first century.

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