SOMETHING IS BETTER
THAN NOTHING
On
05 Feb 2016 , Economic Times carried a news report titled : Employers May Get
Sops for Creating Extra Jobs
As
per this report , NDA govt is expected to announce following incentives for
employers who create new jobs :
*
30 % tax exemption for units that create an additional 2 % jobs
*
Alternatively, the hirer could be given a 125 % rebate on provident fund
contributions
*
Availability of easy, cheap credit through interest subvention ( Subsidy ? )
Even
as I await the budget speech of Shri Jaitleyji on 29 Feb for full details , I
wish to thank Shri Narendra Modiji for
considering the CORE of my following proposal sent to him on 06 Nov 2014 :
------------------------------------------------------------------------------------------------------------------------------
To complete this ECO SYSTEM ,
we need to think " Out of the Box
" in the matter of Corporate Tax Regime , as well
Current trend in industry ,
all over the world , is to
> Add highly
productive , very expensive machinery to " Automate
" all
manufacturing processes
> Reduce manpower by increasing " Capital /
IT Intensity "
> Hire low skilled workers by transferring
higher " Skills " to machinery
> Outsource manufacturing to countries where
manpower is cheap
> Move out of "
Manufacturing " and shift to "
Services "
India cannot swim against
this World-wide Trend
We must innovate, to
not only survive but to grow in this scenario
Here is my suggestion :
Set in motion , " INVERSION of JOB REDUCTION "
regime , under which ,
" The
more jobs a company creates , the less Corporate Tax it pays
"
Example :
> Up to employment of 100
persons ............................... 30 %
> 101 - 500
persons.................................................... 25 %
> 501 - 1000 persons
................................................... 20 %
> 1001 - 5000
persons .................................................. 15 %
> 5001 - 10,000
persons ................................................. 10 %
> Above 10,000
persons ................................................. 5
%
Let us
celebrate those who provide employment to large number of persons
Let us celebrate BIGNESS
Let us create hundreds of
WORLD SIZE corporations and
take on the World
On top of this , provide
additional tax - breaks ( discounts ? ) to corporate as follows :
> Average Age of Employees
at 30 years....................... 1 %
> Ave age at 25
years................................................. 2 %
>
Ave age at 20 years ................................................. 3 %
Of course , very strict and transparent rules will need to be framed to
compute,
> Number of Employees ( Permanent - not probationers / trainees )
> Average Age ( as on 31 March of Tax year )......etc
But , here is an important aspect of this , " Incentivize Job Creation " Scheme :
Today's labour laws make it extremely difficult - if not impossible - for employers to layoff / retrench workmen , if demand shrinks
Hence , to take advantage of this Scheme , employers are unlikely to hire thousands of youth , if they cannot easily trim the workforce , to match the shrinking demand
So , an important corollary of this Scheme is to modify our existing Labour Laws to facilitate layoff / retrenchment , when situation so demands , while protecting the interests of the workmen concerned
Of course , very strict and transparent rules will need to be framed to
compute,
> Number of Employees ( Permanent - not probationers / trainees )
> Average Age ( as on 31 March of Tax year )......etc
But , here is an important aspect of this , " Incentivize Job Creation " Scheme :
Today's labour laws make it extremely difficult - if not impossible - for employers to layoff / retrench workmen , if demand shrinks
Hence , to take advantage of this Scheme , employers are unlikely to hire thousands of youth , if they cannot easily trim the workforce , to match the shrinking demand
So , an important corollary of this Scheme is to modify our existing Labour Laws to facilitate layoff / retrenchment , when situation so demands , while protecting the interests of the workmen concerned
And , last but not the least
, permit each and every candidate - and the political parties as well - to
spend ANY AMOUNT on election campaigns , without any restrictions as also
accept any amount of Corporate Donations
by
cheque
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www.hemenparekh.in / blogs
07 Feb 2016
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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