Let Us Get Our Priorities Right

Nibbling  on  Crumbs  ?

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DNA ( 09 Aug ) carries following report :

“ Over Rs 13.7K cr ( $ 2 Billion ) in undisclosed income detected “

The Income Tax department detected undisclosed income of Rs 13,715 crore through surveys in 2016 -17, Minister of State for Finance Santosh Kumar Gangwar said on Tuesday. Also, as many as 1.26 crore new taxpayers were added last fiscal, he said in a written reply in the Rajya Sabha.

Last fiscal, the income tax department conducted searches at 5,102 premises of 1,152 groups, during which undisclosed income of Rs 15,496 crore was admitted.

“During the same period, 12,526 surveys led to detection of undisclosed income of Rs 13,715 crore,” Gangwar said.

He said a total of 1.96 crore income tax returns were filed between November 9, 2016, to March 31, 2017, compared to 1.63 crore returns filed during the same period.

In a separate reply, Gangwar said that during phase one of ‘Operation Clean Money’ launched on January 31, about 18 lakh persons were identified whose cash transactions did not match their tax profiles.

More than 9.27 lakh responses were received giving information on 13.33 lakh accounts

All these  efforts / time / money , to uncover a paltry   $ 2 Billion   ?

At this rate , how many years will it take to uncover  $ 176 Billion  that we need for

India’s Electric Mobility Plan ?

http://feedbackconsulting.com/pdf_files/opportunity-in-the-indian-electric-vehicles-market-2017.pdf

And  $ 1,000 Billion  for all the Infrastructure Projects , over the next 10 years ?

The only way out is :

AMNESTY SCHEME  for investment of  BLACK MONEY  in  INFRASTRUCTURE SPVs

Here is a hint on how India can raise that  $ 1000 Billion  for Infrastructure :

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( Source :

https://www.bloomberg.com/news/articles/2017-07-26/indonesian-parliament-passes-law-to-chase-tax-evaders-overseas )

Indonesia Passes Law to Chase Tax Evaders Overseas

Indonesia moved a step closer to hunting down tens of billions of dollars it believes its citizens have hidden abroad after political parties agreed to seek a parliamentary approval for a law that will give tax officials access to financial data held by other countries.

A meeting of various political parties on Wednesday agreed to seek the parliament approval to turn an emergency rule in lieu of law, known as perpu, into a law at a plenary session on Thursday, said Johnny G. Plate, a lawmaker and member of Commission XI.

The law will fulfill a requirement for Indonesia to participate under the Organisation for Economic Co-operation and Development’s Automatic Exchange of Information framework.

The law will pave the way for Southeast Asia’s biggest economy to ramp up tax collection by getting better access to information on any assets parked in jurisdictions such as Singapore and Hong Kong.

While a  Tax Amnesty scheme  ( pay tax @ 4 % - and that’s all ! ) launched last year uncovered more than  $360 billion

Finance Minister Sri Mulyani Indrawati has estimated another 185 trillion rupiah ( = $ 14 Billion ) in tax revenue could be unlocked under the AEOI framework. 

Indonesia, which has a poor tax collection rate, has been facing a fiscal shortfall andneeds to shore up revenue to fund an ambitious infrastructure program.

While sitting on a pot of gold , how long will we keep approaching the foreign investors with a “ begging bowl “ for FDI in infrastructure ?

09  Aug  2017

www.hemenparekh.in / blogs