Black money and Corruption are the major causes for persisting inflation and it is for the Government to tackle this through very effective economic and administrative policies.The taxation policies need a total revamp to ensure that all economic activities and majority of the people earning income above a threshold limit come under tax net. The tax can be kept as low as 5% and ensure that the Government captures the data accurately on all transactions and earnings. The Information Technology can be put into optimum use to detect evasion and avoidance of tax. Many in the economy do not know what is meant by Income Tax even if they earn in lakhs and crores. Cash transactions should be brought down drastically to ensure against generation of black money.The economy will really boom if black money is contained and taxation policies are made to augment revenue, investment, production, employment and savings. What the economy needs is strong action to check tax evasion.
Dr.T.V.Gopalakrishnan
( This comment appeared in TOI against the news report Black Money in 2011 on 13/12/13)
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