What is Arthakranti Proposal? Did you meet the Prime Minister to discuss your idea? https://www.businesstoday.in/magazine/cover-story/story/arthakranti-pratishthan-ngo-demonetisation-66226-2016-11-26 What is Arthakranti Proposal? Did you meet the Prime Minister to discuss your idea? We see the re-introduction of new currency (notes) only as a provisional measure. Demonetisation is a shock. Everyone is feeling insecure. Bringing in new notes will cushion that shock. We believe the government will get back to our original plan of demonetisation soon...We suggested that all taxes should be withdrawn and replaced with a single banking transaction tax (BTT). The next step was to demonetise high-value currency, followed by taking away legal sanctity of high-value cash transactions...
So, penetration of M-money or digital money and digital transactions are all very much in tune with our proposal. ..To begin with, the government may take out the personal income tax in the first phase. And it may introduce a 0.1 per cent or 0.2 per cent BTT. Once the Centre convinces the states, it can proceed further. That will be in tune with Arthakranti, but not the complete proposal. We want taxes to be withdrawn in a phased manner. The transition phase that we have designed is over a period of 18 months....
We want to abolish all taxes, except customs duty, which is needed to control imports. Government revenue should come from BTT.
https://www.punekarnews.in/meet-the-punekar-anil-bokil-who-advised-pm-narendra-modi-against-rs-500-and-rs-1000-notes/ What is in the Proposal ?
“Arthakranti Proposal has FIVE point of actions simultaneously.
(1) Scrap all 56 Taxes including income tax excluding import duty.
(2) Recall and scrap high denomination currencies of 1000, 500 and 100 rupees.
(3) All high value transaction to be made only through banking system like cheque, DD, online and electronic.
(4) Fix limit of cash transaction and no taxing on cash transaction.
(5) For Govt. revenue collection introduce single point tax system through banking system – Banking Transaction Tax (2% to 0.7%) on only Credit Amount
What will happen if All FIFTY SIX Taxes including income tax scrapped :
(1) Salaried people will bring home more money which will increase purchasing power of the family.
(2) All commodities including Petrol, Diesel, FMCG will become cheaper by 35% to 52% .
(3) No question of Tax evasion so no black money generation.
(4) Business sector will get boosted. So self employment.
What will happen if 1000/ 500/ 100 Rupees currency notes recalled and scrapped :
(1) Corruption through cash will stopped 100%.
(2) Black money will be either converted to white or will vanish as billions of 1000/500/100 currency notes hidden in bags without use will become simple pieces of papers.
(3) Unaccounted hidden huge cash is skyrocketing the prices of properties, land, houses, jewellery etc and hard earned money is loosing its value; this trend will stop immediately.
(4) Kidnapping and ransom, “Supari killing” will stop.
(5) Terrorism supported by cash transaction will stop.
(6) Cannot buy high value property in cash showing very less registry prices.
(7) Circulation of “Fake Currency” will stop because fake currency printing for less value notes will not be viable.
What will happen when Banking Transaction Tax (2% to 0.7%) is implemented : (1) As on today if BTT is implemented govt can fetch 800 x 2% = 16 lakh crore where as current taxing system is generating less than 14 lakh crore revenue.
(2)When 50% of total transaction will be covered by BTT sizing 2000 to 2500 lakh crores, Govt will need to fix BTT as low as 1% to 0.7% and this will boost again banking transaction many fold.
(3) No separate machinery like income tax department will be needed and tax amount will directly deposited in State/Central/District administration account immediately.
(4) As transaction tax amount will be very less, public will prefer it instead paying huge amount against directly/indirectly FIFTY SIX taxes.
(5) There will be no tax evasion and govt will get huge revenue for development and employment generation.
(6) For any special revenue for special projects, govt can slightly raise BTT say from 1% to 1.2% and this 0.2% increase will generate 4,00,000 crores additional fund.