Big tax-concessions announced for corporates in addition to earlier-announced relief to automobile sector coupled with Reserve Bank of India transferring heavy funds to government can be relief for corporate-giants as evident from record-creating highest one-day jump in Sensex on 20.09.2019, may ultimate prove to be harmful for economic health of the country resulting in increase in budget-deficit leading to price-rise.
Economic boost can only be by taking steps to increase purchase-power of consumers, and employment-generation both in private and public sectors. Any concession in automobile-sector affecting revenue-earning adversely can never increase car-sale without increasing purchase-power of persons or firms affording cars. Best remedy is to promote retail-wholesale trade which provides huge employment and maximum contribution of 28-percent to Indian economy. Only discouraging fast-increasing trend of on-line sale can boost wholesale-retail trade.
Employment in public-sector can be tremendously increased by digging out unaccounted money through permanent Voluntary Disclosure Scheme whereby those declaring unaccounted money may be asked to invest 50-percent amount in long-term Infrastructural bonds with nominal interest, to be issued by central government and public-sector undertakings. For example any money generated out of such bonds if issued by IRCTC can be invested in setting up of units for bakery-items in all the districts of the country generating huge employment. These bakery-items can replace cooked food in trains and mid-day programme in schools where there are usual complaints of unhealthy food prepared under unhygienic conditions.
Rather than giving usual jerks of up-down in tax-structure, total overhaul of tax-structure free of additives like cess and surcharge should be there with two-slab GST system of 10 and 25 percent (additional slabs in multiples of 50-percent to replace cess) and maximum Income Tax slab restored back to 30-percent with addition of another 10-percent slab with highly misused Input-Tax-Credit system retained only for trade-channels, and abolishing from manufacturing sector. Not issuing GST invoices may be made non-bailable offence so that traders may issue GST invoices even if consumer does not insist on same.
SUBHASH CHANDRA AGRAWAL
(Guinness Record Holder & RTI Consultant)