Withdrawal of 2000 notes is a right step, more steps should be taken to control black money: Maganbhai Patel
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The government should impose less tax on all the people. However, giving relief in income tax in any other form would prove to have negative consequences for the economy. Along with this, the government should also keep in mind that free things or concessions should be avoided.
The All India MSME Federation has welcomed the recent move by the Reserve Bank of India to withdraw the Rs 2000 note. The Federation says that in the year 2016, when demonetisation took place in the country, some people of the country did not pay tax on the black money they had. Federation says that most of the cases of such people depositing cash amount ranging from Rs 2.50 lakh to Rs 5 lakh in the accounts of friends, relatives, poor people or farmers and withdrawing cash after deducting 10% commission, which shows It is believed that the government has not got proper success due to the move of demonetisation. The money which was black, remained black, there was no change in it, but due to this decision of the government, fake currency has definitely suffered a lot.
The Federation says that if the government had given complete exemption for one year by imposing only 15% income tax, today black money would not have been generated. In the year 2016-17, the cash in the country was 13 lakh crores, which at the end of March 2023 has become 2.5 times i.e. about 33 lakh crores. This means that the money deposited in the bank has been converted into cash.
Banking system needs to be reformed
The practice of digital payment has definitely increased in banks, but there are many drawbacks with it. Due to the closure of the banks’ servers or any other type of technical fault, the money is deducted from the person’s account but is not deposited in the beneficiary’s account and after about 24 to 48 hours, it returns to the account of the person sending the money. finds. In many nationalized and private banks of the country, the money comes into the account after about 7 to 8 days of check deposit payment. A common man has to go through many mental torture processes like filling forms, applying, getting KYC done and lack of staff to open a bank account. Due to this, due to lack of funds in the account, the checks of the people in front are returned and this return check is returned to the person after about 10 days. Digital payment system like developed countries like Europe, America has not yet been established in our country. Therefore, to make the digital payment system even better in the country, an effective system should be made. Thus separatists, terrorists or other wrongdoers can be controlled by controlling the black money in the country.
2000 note withdrawal process should not be flawed
Recently, due to the decision taken by the government to change from 2000 rupees note to only 20 thousand rupees, a lot of crowd is gathering in the banks and some wrong people are being made to stand in line by paying commission. In this regard, Mr. Maganbhai Patel says that it is necessary for the MSME units of the country to keep Rs 2 to 10 lakh cash according to their turnover, because such units where about 200 to 250 employees work, they have to spend many small and big expenses till the evening. In cash, there is an asymmetry that MSME units face difficulty in carrying out urgent cash transactions due to such stringent restrictions. The government makes laws for the development of the country’s economy, which is praiseworthy, but it is not properly implemented by the people. The surprising thing at times is that the wrong people are encouraged by the concerned authorities.
It is necessary to rationalize income tax and other taxes
The income tax exemption given by the government in the last year’s budget is highly commendable, due to which the tax collection in GST and other revenue has increased by about 10 to 15 percent which is highly commendable. The All India MSME Federation had given necessary suggestions in the Income Tax Slab at the time of the Government Budget-2023, according to our suggestion, the exemption given in the income tax slab is certainly worthy of thanks but there are still flaws in its implementation. The government should take such measures so that money comes in the market. If taxes are low, people will spend more and this will make it possible to buy houses or other things legally, which will also increase the revenue of the government.
The government should impose less tax on all the people. However, giving relief in income tax in any other form would prove to have negative consequences for the economy. Along with this, the government should also keep in mind that free things or concessions should be avoided. The treasury is empty due to concessions. Even if the government helps the needy, but the government treasury should not be opened for the non-needy. We can say this on the basis of our 60 years of experience.
Today industrialization is taking place in the country. Honorable Prime Minister and his team are working day and night to make the dreams of the people come true. When the country became independent, according to our information, 78% income tax and 10% surcharge for corporates / big units means 88% tax means how can it happen that a common man earns Rs 100 and pays tax of Rs 88? The flawed tax system of the time resulted in some people learning to evade taxes. This process was subsequently controlled through consultation and facilitation. But still many scams keep coming to the fore. Therefore, some people involved in big scams should not be spared and the amount should be recovered from them along with interest and penalty. Some states have done a good job in this direction and have been successful in controlling the law and order with strict attitude.
It is necessary to give relief to the MSME industry
Today most of the MSMEs in the country are run by partnership firms wherein 30 per cent income tax is already levied on profits of Re 1, which is really not a fair practice. If the tax slab is increased to 20 per cent, then the participation capital in MSMEs will increase, which will also increase GST and other revenue to the government. Lower slab of income tax is necessary to generate white capital. Black money is increasing to save income tax from wrong slabs of income tax. Today we have to work in a special direction to bring this black money under control. At present there is 25 percent income tax slab in Private Limited as well as Public Limited which is 30 percent in Partnership firm which is really unfair. By keeping the income tax on small and unorganized partnership units at 20 per cent, the government’s GST and other tax revenue can automatically increase.
The above are our suggestions, which if considered will speed up the industrial development of the country and if effective measures are taken to ensure that the MSME units of the country do not face financial difficulties, then it will certainly be a result-oriented work for the development of the country. Will happen.
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