Baba Ramdev dares UPA govt on black money issue

 

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Ahmedabad: Baba Ramdev, who was here on Saturday to mobilize support for his August 9 protest, said if Congress did not act on the issue of bringing back black money, he would ask people not to vote for it. Ramdev is planning to launch an agitation from August 9 at Delhi's Jantar Mantar against Congress-led UPA government's failure to bring back the black money from foreign banks.

He said that he would give Congress party the opportunity to take action to bring back the black money, but if it failed, he would ask the people not to vote for Congress party.

"In the elections in five states, people have shown the ruling party that they will not tolerate corrupt people in power. This time we will give specific instruction to people that they should not vote for this particular party as it is not interested in bringing back the black money, removing corruption and saving the country," Ramdev said.

"The government is thinking that low turnout at Team Anna Hazare's fast venue means that it can continue with its corrupt ways. But I say this government should not underestimate any public agitation," Ramdev said.

"The month of August will be crucial as a crowd of 2 lakh will turn up for my agitation and I don't know what will be government's reaction."

Legalising black money

Does it serve the greater good?

The debate over allowing or disallowing of whitening of undisclosed sums of money is a strong one. The proposed provision for legalising moneys that is off the books envisages a payment of a flat penalty @10 percent. This facility of making black money white is likely to take effect in the next fiscal despite strong reservations of the various bodies representing the business community. The reasons for such opposition are obvious.

On the one hand the government is pressing ahead with widening the tax net and encouraging people and commercial entities to pay what is due to deepen the State's coffers; simultaneously it is extending the scope for legalising income generated illegally. The latest move is bound to send mixed signals to those who remain outside the tax brackets for it smells of double standards. Furthermore, how exactly does the government intend to legalise ill-gotten money when it is signatory to international anti-money laundering statutes remains to be seen. The fact that such undisclosed sums are commonly associated with corruption, crime or other illegal activities is not lost on anyone. More importantly, granting of such facility year after year encourages, even the otherwise honest tax payer to reconsider paying taxes. When one may 'whiten' one's money at a flat rate of 10 percent as opposed to the multi-layered tax slabs that exist under the tax laws, does it not make more sense to go with the latter?

Govt moots one-time tax amnesty to recover black money stashed abroad

TNN | May 22, 2012, 12.37AM IST

Government’s white paper on black money tabled in Parliament on Monday listed a one-time tax amnesty to recover funds stashed abroad and a gold deposit scheme for locals as possible ways to deal with the menace.

NEW DELHI: The government's white paper on black money, tabled in Parliament on Monday, listed a one-time tax amnesty to recover funds stashed abroad and a gold deposit scheme for locals as possible ways to deal with the menace, while suggesting that individuals get the tax department's go-ahead for all property deals and face undue scrutiny on cash in their possession.


It also called for setting up of independent regulators, ombudsmen for allocation of natural resources, as well as Lokpal and Lokayuktas.

The document has been prepared in response to the clamour for crackdown on corruption and unaccounted wealth, and is supposed to help the government counter the perception of inaction that has bruised it politically. However, in its anxiety to appear tough, the government tilted towards prescriptions which can set the clock back on tax reforms and result in harassment of honest taxpayers.