Artha Kranti - No Income Tax and No corruption - Check how

Hi Friend,

If less corruption means more growth of Equity / Business then what happens if corruption is almost completely eliminated?

Here is the Idea of Mr. Anil Bokil to eliminate corruption.

Abolition: 

Withdrawal of all Direct and Indirect Taxes (except customs and import duties).

Single tax on transactions:

• Every transaction routed through a bank will attract certain deduction in appropriate percentage as Transaction Tax i.e. Single-Point Tax deducted at source.

• This deduction is to be effected on receiving / credit account only.

• This deducted amount could be credited to different Government levels like  central, State and Local and Transacting Bank (as commission)

Currency compression: 
In a given time frame, currency notes of denomination higher than Rs.50/- could be abolished from circulation. The highest denomination thereafter will be Rs.50/-

Cash regulation:

• Cash transactions will not attract any transaction tax.

• Cash transactions above a certain limit, say, Rs.2000 will be deemed illegal. This also implies that cash transactions below this limit will be tax-free and legal.

Control and verification systems: 

• Every bank account must be linked to a unique identification number like P.A.N. It must be binding by law on all banks in the system to carry out Transaction Audits of all accounts in each branch and submit them periodically to the Govt., duly certified by the CAs.

One might argue, “We don’t have PAN for all the people in India?” yes, but we have Aadhaar for half the people in the country and in about a year’s time we will have Aadhaar for all of them. Wouldn't this idea be practicable then? I have a lingering doubt that Aadhaar was brought in keeping this “Artha kranti” in mind, don’t you think so?

So, how long will it take for the country to be corruption free? My guess is about 10 -15 years from now. That is the time frame required to rollout bank accounts for all the people in India and make the system transparent. Do we have to worry about the growth of our equity investments then?

You may check the following videos on how “Artha Kranti” proposals have the potential to change our lives to the better, 

http://www.youtube.com/watch?v=GVfmUmB0bpM

http://www.arthakranti.org/downloads/videos

Jai Hind and Happy Investing.