Plug the loopholes and get back black money

Panama Papers leak brings focus again on politically sensitive and economically urgent issue

rahul

Rahul Dass | April 5, 2016 | New Delhi


#Amitabh Bachchan   #Narendra Modi   #NDA   #economy   #black money   #Panama Papers  


Filmstars and business tycoons are among the 500 Indian names that were revealed through the Panama Papers, which are over 11 million leaked documents – bringing into focus black money, a politically sensitive and economically urgent issue that has triggered considerable debate in the recent past.

Celebrities like Amitabh Bachchan and his daughter-in-law Aishwarya Rai as well as business tycoons like DLF founder KP Singh and IndiaBulls promoter Sameer Gehlaut feature in the huge cache of documents from Mossack Fonseca based in Panama, a country whose image is that of a haven for money laundering.

The Indian Express expose has once again shown that unaccounted-for wealth stashed abroad continues to be a bane for the country, despite promises during the heated campaign ahead of the general election that brought the NDA to power in 2014.

The Congress has repeatedly referred to prime minister Narendra Modi’s election campaign speeches in which he had said that black money to the tune of Rs 80 lakh crore was stashed abroad and his government would bring it back in 100 days of coming to power. He had also reportedly hinted that the repatriated money would be enough to deposit Rs15 lakh into the bank account of every Indian.

The NDA government did put in an effort that saw the passage of the black money bill. But that may not be enough to get black money that is hidden away from the prying eyes of tax sleuths.

Those who succeeded in avoiding taxes in India have been able to exploit the loopholes, which needs to be plugged.

The decision taken by the government to form a multi-agency group including the Financial Intelligence Unit, CBDT and RBI is a step in the right direction – with a caveat. It can also be a kneejerk reaction following the damning Panama Papers that have once again shown that all is not well without our financial system.

There are only guesstimates with regard to black money. A study by industry body Assocham says nearly $2 trillion or Rs 120 lakh crore of Indian black money is stashed overseas. That is more than the country's nominal GDP, which stood at Rs 114 lakh crore or $1.9 trillion in 2013-14. The numbers are simply mind-boggling.

Incidentally, as India struggles to bring back black money, Panama itself has not benefitted as the country has the second worst income distribution in Latin America—and about one-fourth of the population lives in poverty.

 

Comments

 

Other News

Fewer and fewer parliament sittings

The winter session of parliament this year is going to be from December 15 to January 5, which will result in fewer sittings and impact legislative productivity. When parliament meets for a fewer days, it is bound to have an adverse impact on the work. The parliamentarians do get to spend mo

Indians most affected by global internet policies: Aruna Sundararajan

 People in India are most affected by global internet policies, said secretary, department of telecommunications, Aruna Sundararajan. Flagging the challenges of national governance, Sundararajan said on social media India has the largest number of users.   

Three killed as train derails in UP

Three passengers were killed and around a dozen sustained grievous injuries after nine coaches of Vasco Da Gama-Patna express derailed near Manikpur railway station in Uttar Pradesh on Friday morning. Similarly, 14 wagons of a goods train also jumped off the track near Cuttack in Odisha. 

Should Patidars of Gujarat be given reservation?

Should Patidars of Gujarat be given reservation?

Job market is currently experiencing structural change: Nathan

SV Nathan, partner and chief talent officer, Deloitte India spoke to Praggya Guptaa about the current job market situation and the upcoming opportunities in India. How would you assess the job market situation in India? If you look at the economy today

Are we seriously fighting malnutrition?

It did not surprise me when the India: health of the nation’s states, the India state-level disease burden initiative report released recently reported malnutrition the prime risk factor driving the most deaths and disability in Madhya Pradesh. Even in 1990 malnutrition was the frontrunner and after



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter