Dear Members of Lok Sabha,
Following are two emails that I sent to Shri Arun Jaitleyji , for
his consideration
If you think there is some simple / common-sense , logic in my
arguments , I would request you to raise this issue for debate in the
forthcoming session of Lok Sabha
Please remember , issue such as " Abolition of Personal
Income Tax " , has no " party color "
with regards ,
hemen parekh
Mumbai / 0 - 98,67,55,08,08
--------------------------------------------------------------------------------------------------------
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 )
Dear Shri Jaitleyji ,
For over two years now , I have been advocating ,
> " Inverse Taxation Regime " both , for Personal Income Tax as also forCorporate 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
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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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