Dear Shri Kant ,
Many thanks for your kind words
Yesterday , I have couriered to you , a folder titled " Transforming India " . It should
reach you today
That folder carries my suggestions ( my past blogs ) , as listed
in attachment
With so much talk / action about DIGITAL
INDIA , you may want to forward my suggested Mobile
Apps ( listed in the folder , as * VotesApp
/ * I SIN > < U SIN ) , to the concerned
officers , for examination , and implementation , if considered feasible
In the meantime , I hope you find some time to read my today's
blog , reproduced below
with regards ,
hemen parekh
Mumbai ( 0-98,67,55,08,08 )
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
A CASE FOR ZERO
PERSONAL INCOME TAX
--------------------------------------------------------------
For past two years , I have been advocating total abolition of
Personal Income Tax
Not because , a few countries such as Saudi Arabia , UAE , Qatar , Oman , Kuwait , Bahrain etc , have NIL personal income tax
But , even for a less developed country like ours , it makes a lot of sense
Here is why :
* Today's Hindustan Times reports following study by Price Water-house Coopers ( PWC ) :
" Average take-home salary as a % age of total salary " - are :
> Saudi Arabia................ 98.86
> China....................... 62.05
> Germany................... 60.61
> USA.......................... 60.45
> UK........................... 57.28
> India......................... 54.90
> Italy......................... 50.59
* It is obvious that Saudi Arabian citizens take home more because there is NO personal Income Tax there
* In India , our " Take home Salary " is only 54.90 % , because we pay a very
high personal income tax
* Of the total revenue receipt of Central Government ( 2013-14 est ) ,Personal Income Tax contributes only 23 % ( approx Rs 12.4 lakh crore )
* If personal income tax were to be abolished , this revenue will be lost
But , here is the Upside :
* India's current Household Saving Rate = 30.1 % of GDP
* That means our total Household Savings = Rs 24.72 lakh crore
* Of these ,
> Rs 16 lakh crore are tied up in unproductive Physical Assets (Gold/Land)
> Rs 8 lakh crore are invested in Financial Assets (Bank / Mutual Funds)
* If Personal Income tax is abolished , it is possible that our Household
Savings Rate may go up from 30.1 % to 45% of
GDP (it was 40% in past)
* That would add Rs 12.36 lakh crores , raising total to Rs 37 lakh crore !
* And most likely , the proportion of investments would be ,
> Rs 7 lakh crore in Physical
Assets , and
> Rs 30 lakh crore in Financial Assets ( Productive use )
And that's not all !
* With NIL personal tax to pay , all the cash ( black money , no doubt ! ) ,
lying in bank lockers , will get deposited in
official bank accounts , within
one year
Now , couple this BOLD & IMAGINATIVE step with :
* Creation of SPVs , dedicated for building Infrastructure . No questions asked
for amounts invested in these SPVs . No dividend tax for 10 years
If implemented , there will be no reason for us to go begging China / Japan / USA for investments in Infrastructure / Manufacturing etc !
* hemen parekh / 12 Nov 2014
From: amitabh.kant@nic.in [mailto:amitabh.kant@nic.in]
Sent: Tuesday, November 11, 2014 5:55 PM
To: Hemen Parekh
Subject: Re: HOW CHINESE MAKE CHEAP ?
Sent: Tuesday, November 11, 2014 5:55 PM
To: Hemen Parekh
Subject: Re: HOW CHINESE MAKE CHEAP ?
Excellent Piece! Congratulations!
Warm Regards,
Amitabh Kant
----- Original Message -----
From: Hemen Parekh <hcp@recruitguru.com>
Date: Sunday, November 9, 2014 8:51 am
Subject: HOW CHINESE MAKE CHEAP ?
To: nsitharaman@nic.in
Cc: amitabh.kant@nic.in, singh.shailen@nic.in
----- Original Message -----
From: Hemen Parekh <hcp@recruitguru.com>
Date: Sunday, November 9, 2014 8:51 am
Subject: HOW CHINESE MAKE CHEAP ?
To: nsitharaman@nic.in
Cc: amitabh.kant@nic.in, singh.shailen@nic.in
> Dear
Team India :
>
> Here
is my latest blog :
> ---------------------------------------------------------------------
>
> A few
days back , I heard , Government of India banned imports of cheap Chinese
fire-crackers ; presumably to protect the jobs of thousands of workers ,
working in the fire-cracker factories of Shivkashi and elsewhere
>
> This morning newspapers carry headlines :
>
> " Lakhs of poor women working in Agarbatti factories thrown out of jobs , due to imports of cheap Chinese Agarbatties "
>
> Soon expect a ban on imports of Chinese Agarbatties !
>
> It is the same story with big manufacturers of ,
>
> > Power Generation equipment
>
> > Solar panels
>
> > Machine Tools
>
> > Construction Materials........etc
>
> Indian manufacturers of these equipment want India Government either to ban imports of such equipment altogether or impose huge import duties to discourage its imports
>
> They are telling Government :
>
> " If you don't , thousands of workers will lose jobs "
>
> In turn , the Indian Government is telling the Chinese :
>
> " We already have a negative trade balance with you , of about $ 35 BILLION.
> You must help us correct it
by buying from us MORE ( of those expensive goods that we manufacture ) ,
>
> and,
>
> Stop exporting to us all of those CHEAP Chinese goods "
>
> Question is :
>
> How many Chinese goods can we stop importing ?
>
> No one seems to be asking :
>
> " What enables the Chinese Manufacturers to make those goods so cheap ? "
>
> May be - just may be - India Government , and those Indian manufacturers , need to find answers to this question !
>
> May be , we need to IMPORT those Chinese Labor Policies / Government Procedures / Manufacturing Practices / Bank Interests / Tax rates / Land Usage laws / Single Window clearances and a hundred other things that have enabled China to become , the " Workshop of the World " !
>
> That is the only way to save - and create - JOBS , in India
>
> ---------------------------------------------------------------
>
> hemen parekh / 09 Nov 2014
>
>
|
Amitabh Kant
Secretary to Govt. of India
Ministry of Commerce and Industry,
Department of Industrial Policy and Promotion,
157, Udyog Bhawan,
New Delhi-110 107
Tel: 23061667 / 23061815
Fax: 23061598
email: amitabh.kant@nic.in
No comments:
Post a Comment