Black Money – Domestic and International Efforts

[op-ed snap] Challenges in the face of corruption

  1. Three components of black economy: Corruption
  2. Example, the high stamp duties on real estate transactions that lead to payments in cash
  3. Second- methods adopted for storing unaccounted wealth. Example, holding assets in gold
  4. Third, methods through which transactions are effected
  5. Bundles of rupees can be replaced by bundles of US dollars. By year end, Indian small businessmen will be as fluent with bitcoin as they are comfortable with US dollar bills
  6. Six battlegrounds in this war: gold, hawala, real estate, taxation, politics and elections, and administration
  7. In 2013, when the customs duty on gold was reintroduced, it dealt a body blow to the world of gold and jewellery conducted through white money
  8. Eliminate customs duty and solve this at the root cause. Customs duties are “bad taxes” and should go
  9. Hawala business that emerged in 1960s and 1970s in response to capital controls that were a part of Indian socialism, need to be tackled
  10. Buying agricultural land, obtaining urban infrastructure like electricity and water, and getting a building plan approved: all are mired in problems
  11. Cash payments are favoured so as to avoid stamp duty
  12. Real-estate sector should be merged into GST
  13. Taxes other than income tax and GST, at the central level, should be removed. This will take us to a high-compliance and low-corruption environment
  14. Running a political party and fighting elections requires large-scale resourcing forcing the use of black money
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