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

Kodnani’s acquittal raises doubts about criminal justice system

 Maya Kodnani, a BJP leader who was the MLA from Naroda when this locality on the outskirts of Ahmedabad witnessed one of the most gruesome episodes during the Gujarat riots of 2002, was acquitted by the Gujarat High Court on Friday. Her acquittal in the Naroda Patiya massacre case is only a sequel to

BMC took nearly 48 days in resolving one complaint

The number of civic complaints with BMC has increased from 61,910 in 2015 to 92,329 in 2017, which is 49% in two years. A report titled ‘Civic Issues Registered by Citizens and Deliberations done by Municipal Councillors in Mumbai’ released by Praja Foundation has found some interesting facts a

Who is Atishi Marlena?

Atishi Marlena is among the nine AAP functionaries who were dismissed by the union home ministry asserting that their posts were created without the approval of the centre. Marlena, served as education advisor of the Aam Aadmi Party (AAP)-led government in Delhi. While she was intrumental in improving the

Leadership? Learn it from Jaising, Ambani, Doshi

The Fortune magazine has named three Indians – lawyer Indira Jaising, industrialist Mukesh Ambani and architect Balkrishna V Doshi – among the world’s greatest fifty leaders.

Energy as the new value system for redesigning daily life

Remember Kardashev scale? For the uninitiated, it’s a method of measuring a civilization’s level of technological advancement, based on the amount of energy it is able to use for communication. We will get to its unconventional relevance to the big urban questions at the end, but just keep it a

48 MLAs, MPs have declared cases of crime against women

Out of 1580 MPs and MLAs with criminal cases, 48 (three MPs and 45 MLAs) have declared cases related to crime against women. The Association for Democratic Reforms (ADR) and

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter