Reports are emanating from different quarters about the seriousness of the government to curb the black money. We hear about close monitoring of the tax havens. Consultations with countries like Cyprus, Switzerland, Mauritius etc are in progress. The latest is the proposed team from external affairs ministry to visit Cyprus, which is reckoned as one of the top tax havens and a destination used for round tripping money through the foreign institutional investors. There are indications that the government may drop some of the provisions that abet round tripping. That will attract the provision of withholding tax once the abetting provisions are removed.
We have been hearing about these serious talks and contemplative steps for a long time. The previous NDA government also talked about it. There were evidences of high trafficking of round tripping of money through Mauritius route. But precious little was done to curb them. The systems that enable the flow are opaque. Added to this, there are vested interests who lobby for the continuance of it. Whatever steps were taken in curbing the source of black money had happened only after 26/11 when the US went all on a hog to find out the source of terror money. The recent breakthroughs in unearthing black money and corruption in high places had happened only with the tip off from other countries or thanks to revelations of the wiki leaks.
Let us take the present case of list of deposit holders in foreign banks, which was handed over to the apex court in ndia in a sealed envelope. Now reports are coming from the SIT that the money in these accounts are pittance. The public do not know whether they are planted stories or not. Also, there are numerous stories and lists in social media floating around, each different from the other. New names are added both from the ruling party and opposition, who have allegedly stashed away billions of money. Public is at a loss to reckon which is the fact and which is the fiction.
Now no one is talking about the black money, which was the hottest subject and headline story in rint and electronic media. Anchors who used to shout at the panelists who give a different view points were conspicuously silent. Have they got instructions from the top or being silenced by their benefactors by one way or the other?
Many in the knowledge of things vouch that not much can be done by the government in this regard. Then why not do the possible thing. Give amnesty to the black money holders and charge from them 30 percent of their booty, which is the highest tax slab applicable to a person.
Business Economics & Services Team
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