Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday 11 February 2015

FW: A VIRTUOUS CIRCLE ?


Dear Shri Jaitleyji

Allow me to withdraw my earlier suggestion re : INVERSE TAXATION regime

At this stage , it's introduction ( in your BUDGET on 28th Feb ) , will appear as " Business Friendly "

It is a pity that pseudo-experts and TV anchors , have tried to create a perception that anything " Business Friendly " , is automatically " People Un-Friendly "  !

As if , " Business-Friendly " and " People Friendly " are two mutually EXCLUSIVE concepts , whereas no two concepts can be more MUTUALLY INCLUSIVE !

In any case , despite AAP win in Delhi , fortunes of BJP ( in the forthcoming Bihar elections and other State Elections ) can be reversed by you - and you alone - , swiftly and decisively , on BUDGET day

By announcing total abolition of PERSONAL INCOME TAX

If not from this year , then from the next year . But , announced NOW ! Giving one year of preparation time

This ( announcement of yours ) , will be hailed by millions of Indians as , the MOST POOR FRIENDLY !

I believe , today , only some 30 million persons pay Personal Income Tax , contributing an INSIGNIFICANT percentage of total Central Revenue

Thru Jan Dhan Yojana , some 115 million bank accounts have been opened , with , nearly 73 % , having ZERO bank balance

Within 30 days of your announcement ( abolishing Personal Income Tax ) , expect these 75 million accounts to boast deposits worth Rs 10,000 / - each

That is Rs  750 BILLION   !

No one knows it better than you , HOW , and WHY this would happen  !

Simultaneously , announce creations of SPVs in which these money can be invested

You will solve many problems with one stroke  !

regards ,

hemen  parekh

Mumbai

0 - 98,67,55,08,08








From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Monday, January 05, 2015 6:52 AM
To: 'ajaitley@sansad.nic.in'; 'ajaitley@del5.vsnl.net.in'
Cc: 'amitabh.kant@nic.in'; 'amitabhk87@yahoo.com'; 'amitabhk87@gmail.com'
Subject: A VIRTUOUS CIRCLE ?

Dear Shri Jaitleyji ,

I submit my following suggestion for your consideration
with regards ,

hemen  parekh
0 - 98,67,55,08,08
Mumbai
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For over two years now , I have been advocating ,


>   " Inverse Taxation Regime " both ,
for Personal Income Tax as also for Corporate Tax

       The more you earn , the less tax ( rate on next higher slab ) you pay

>   For Corporate , the more people you employ , the less tax ( rate on next higher slab ) you pay


>   Even total abolition of Personal Income Tax


There are over a dozen Countries where there is  
NIL  personal Income Tax

So , there is a precedent that this can work  !


If Personal Income Tax was to be totally abolished , what can / may  happen ?


*   There will be no incentive for tax evasion / avoidance 

     This will be a permanent
FULL STOP to future generation of Black Money

*   All payments will be received by cheques and deposited in Bank Accounts-
digital banking on its way ?

*   All stashed away Black Money will , somehow , on its own , find its way in bank accounts, - including Black Money lying in
Foreign Banks , making SIT redundant !

     This is the ONLY WAY , NDA  government can redeem its promise !

*  
Savings rate will go up dramatically

*   That will lead to
greater purchasing power for all people

*   Leading to
higher domestic consumption of FMCG / Consumer Durables

*   This will result in
huge collection of GST , offsetting revenue losses

*   Demand will go up ,
boosting manufacturing

*   With rise in manufacturing , sub-contracting / outsourcing will increase , giving a
big boost to MSME sector 

*   If manufacturing goes up ,
employment / self-employment ,  will go up

*   For a change , we as a Nation , will learn to celebrate , 

     #    
Wealth Creation as a means to reduce poverty

     #    
World-size Companies to take on the World

*   There will be less pressure on demands for higher
salaries / wages

*   If salaries / wages do not rise , inflation will ease

*   Cost of manufacturing too , will go down

*   Era of " Low Cost Economy " will set in (
VIRTUOUS CIRCLE ? )

*   Savings will move from gold / land to Financial Assets

*   With a low cost structure , our products / services  will become , internationally competitive and exports will go up

*   That will improve our current negative Trade Balance / CAD

*   This ( abolition of Personal Income Tax ) should be coupled with SPVs for 

     #    Infrastructure Projects ( especially Smart Cities / Corridors etc )

     #    Educational Institutions

     #     Skill Development Institutions

     #     Health care Facilities

     #     Solar Power ( Eqpt Mfr / Generation / Transmission / Distribution )

     #     Digital India ( Broadband ) Network


     No questions must be asked as to the source of money invested in such SPVs

    All income ( Corporate Income or Personal Income by way of dividends / interests etc ) arising out of investments made in such SPV , must be tax-exempted

SPVs , themselves , must not need to pay any taxes for 10 years 

*   What else  ?

I hope our newly constituted "
Niti Ayoga " will examine my suggestion and guide framing of  

 >    2015 Central Budget NITI 


----------------------------------------------------------------------------------

hemen  parekh / Jan 05 , 2015





From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Tuesday, July 08, 2014 4:04 PM
To: 'pjamwal@gmail.com'
Cc: 'ajaitley@sansad.nic.in'; 'ajaitley@del5.vsnl.net.in'
Subject: Day After Tomorrow

Central  Budget  :  2014

Dear Shri Arun Jaitleyji,

Even as you proceed to present Central Budget to Lok Sabha on 10 July 2014 , please look out the window of your car and see the " Poor " people on Delhi's footpath
Then , like Mahatma Gandhi ask yourself,
"  Whatever budget proposals that I am about to present , will these bring a smile to the faces of these poor  ?
363 million poor Indians , who eke out a survival on expenditure of Rs 32 ( rural ) or Rs 47 ( urban ) per day  ?  (  $0.5 - 0.8 / day  )
For a family of 4 , that works out to , Rs 3840  -  Rs 5640 per month
(  $ 64  -  $ 94 per month )
May be the head of the family manages to earn Rs 2,000 per month , doing odd jobs , here and there
The rest of the income must be coming thru ,
*  Wife scavenging the garbage heaps for discarded plastic bags / bottles
   ( when she is not salvaging discarded food  !  )
*  Children begging on the streets ( you will see them as you drive to Lok Sabha )
Now if,
*   Our population keeps growing at 15 million per year
*   Inflation keeps rising at 10 % per year, necessitating raising " Poverty
     Limit " by 10 % per year
Then ,
*   How many more people will get added to "Poor "population, every year ?
May be 5-7 million/year  ?  25-35 million by 2019 ? Taking the total to 400 million  ?
Mr Jaitley ,
Can you listen to their anguished cries ?
They are " begging " you to create jobs for them , so that they can work hard and earn an honest / decent income , which can lift them above that wretched " Poverty Line "
They don't want your dole-outs / subsidies for food / LPG / Kerosene etc  !
They don't want to remain dependent on Sarkaar - Maa Baap , for ever  !
Sir ,
Can you ( ie Central Government ) give them jobs ? To even 50 million / year  ?
Assuming that creating ONE job calls for an investment ( in fixed assets + working capital ) , of Rs 1 million ( Rs 10 lakhs ) , you need,
* Rs 50 MILLION * MILLION , every year  !
And  YOU  just don't have that kind of money  !
Even as  { Rs 500 MILLION * MILLION  }  of Black Money is locked up in un-productive assets , all over the country  !
The only way you can create those 50 million jobs / year , is to enable these Black Monies to turn into WHITE MONEY and get channeled into Infrastructure / Manufacturing / Services etc
And the only way you can do is to ,
*  Introduce Amnesty Scheme   ( now / immediately )
*  Introduce INVERSE TAX REGIME  ( in 2015 Budget )
I have sent these proposals to Shri Narendra Modi / Shri Murli Manohar Joshi / Shri Nitin Gadkari etc , during the past 8 months

hemen  parekh  ( 08 July 2014 / Mumbai ) 


      


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