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ArthaKranti - Proposal to revise taxation system in India : Fly Or Die?

Question asked by Kaustubh Katdare in #Coffee Room on Jan 13, 2014
Kaustubh Katdare
Kaustubh Katdare · Jan 13, 2014
Rank A1 - PRO
ArthaKranti - a Pune based organisation has been proposing an alternative to the flawed taxation system in India. The proposal simplifies the entire taxation system to just on type of tax, called 'transaction tax'. It would be a simple, single point tax that'd be deducted at the source of transaction. The overall proposal is as follows -
  1. Withdraw existing taxation system completely. The only exception to this will be the customs and import duties that the official website claims that 'act as international trade balancer'.
  2. Introduce transaction tax for every transaction that routes through the bank. This could be about 2%, with Central, State and Local government bodies receiving ~0.70%, 0.60% and 0.35% respectively. The bank will have the remaining share; say 0.35%.
  3. Important: Removal of high denomination currency: above Rs. 50.
  4. Cash transaction will not attract any transaction tax.
  5. No legal protection to transactions that are above Rs.2000.
The proposal has been drafted by Mr. Anil Bokil, a mechanical engineer by profession and his work has been supported by several individuals and organisations as well. Do take a look at: https://www.arthakranti.org/

Do you think ArthaKranti is a proposal that should fly or should it die? Do you see any obvious errors in the proposal? Do you think it's possible? Justify your stand. Posted in: #Coffee Room
Anand Tamariya
Anand Tamariya · Jan 13, 2014
Rank B2 - LEADER
Not practical. If you have multiple accounts and you are transferring money from one a/c to another or you're lending support to your family members, you end up paying tax!!
ISHAN TOPRE
ISHAN TOPRE · Jan 13, 2014
Rank A2 - PRO
Not much feasible. I will prefer to do cash transaction. Say, I buy a property for 1 Cr cash instead of paying cheque. I will not attract stamp any duty.
Kaustubh Katdare
Kaustubh Katdare · Jan 13, 2014
Rank A1 - PRO
@Anand Tamariya - I think this can be easily tracked. I however like the point where lending support to family would lead to tax.

@Issue - I'd love to see you carry 1 crore cash with Rs. 50 notes (200,000 of them). ☕
Kaustubh Katdare
Kaustubh Katdare · Jan 13, 2014
Rank A1 - PRO
I think we should invite members of ArthaKranti in this debate. Do we have the questions ready? 😀
Sarathkumar Chandrasekaran
Rank A2 - PRO
I dont think it can survive as it does not have a good plan and strategy to really works well especially i dont like that issue on bank transaction and 50 denomination.
It should be revised
ISHAN TOPRE
ISHAN TOPRE · Jan 13, 2014
Rank A2 - PRO
Kaustubh Katdare
@Anand Tamariya - I think this can be easily tracked. I however like the point where lending support to family would lead to tax.

@Issue - I'd love to see you carry 1 crore cash with Rs. 50 notes (200,000 of them). ☕
2000 bundles, in one bag. Those who are keen on evading tax will find this way a bit cumbersome but useful too.

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