Arthakranti Proposal

(All Taxes and Duties of Central ,State and Local body Government except customs or import duties which functions as International Trade Balancer).

1. This deduction is to be effected on receiving/credit accounts only.
2. This deducted amount will be credited to different Government levels like Central, State and Local
   (say 0.7%, 0.6%, 0.35% respectively).
3. Transacting Bank will also have its share in this amount as the bank has a key role to perform
   (say 0.35%).

 

This means, Cash Transactions above this limit will NOT enjoy any legal protection

For more Details http://arthakranthi.org

Implementation

The Preparatory Phase

A comprehensive study will need to be carried out to understand the effects of the proposal on the micro level, on all segments of Society and the Economy. Only the Government has the wherewithal and the resources necessary for conducting such an exercise.

Banks will have to invest in technology for efficient management and infrastructure for deeper penetration into areas of low presence. This will be a long-term process and Banks will have to plan their strategies accordingly.

The citizens will have to be informed about the new system over a certain period through the use of every possible means and media. A nationwide effort will have to be made using all existing administrative network to issue unique P.A. Numbers / Social Security no. and cards to each and every citizen.

The implementation phase

The system can be brought into force without any major change in the constitution. It is truly benevolent and fair system, in line with the basic socialistic philosophy of nation. System can implement in following steps,

• Carefully planning in phased manner.
• Timeline for all phases
• Abolition of the existing Tax system.
  • Abolition of the existing Tax system will be effective from a single predetermined date. Simultaneously, the deducting of Transaction Tax from all bank transactions will commence.
• No currency notes of denomination higher than Rs. 50/-.
  • Currency notes of denomination higher than Rs. 50/- will be phased out in a time - bound manner. All this money will attract the standard deduction of Transaction Tax and the balance will be treated as a legitimate wealth thereafter. Regulations governing Cash transactions will also come into force.
• Anticipation of the magnitude and time of revenue generation.
  • The magnitude and time of revenue generation by this system needs to be anticipated. Initially there will be huge deposits of cash of high denomination into banks, and there will be huge inflows of revenue throughout the phase of currency compression.
  • To handle and manage such huge transactions, banks will need to widen their network, and upgrade their operating system comparable to international standards
• Monitoring the effects of implementation steps
  • The effects of these steps will need to be carefully monitored and fine-tuning action will have to be taken as and where required. Tools of monetary governance will have to be judiciously used to control inflation.
• A strict watch on Government spending.
  • Post implementation, a strict watch will have to be maintained on Government spending. The highest degree of transparency will have to be brought into all Government spending decisions

Round the clock, round the year continuous stream of revenue to the Government. The day when currency compression is completed, and 50 rupees is the highest denomination in force, all currency money can be assumed to have come back into the system. Thereafter, all subsequent transactions will yield transaction tax and the Government will receive revenue in a continuous stream, round the clock, round the year.

Expectations from government

In the initial transition period, people are likely to move to cash transactions rather than transactions through bank where the Transaction Tax is going to be implemented. Therefore, in a given time frame, the finance ministry / RBI must make provisions to remove the higher denomination currency notes from circulation. Say, within a year, the highest currency denomination should be Rs. 50.

With only low valued currency available for cash transactions, people will have no choice but to go for transactions through banks, thus helping boost the government revenue collection. All cash money in higher denomination will have to be deposited in banks within this time frame and will attract 2 % Transaction tax. Source of this money will not be asked.

Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000/-). Recognizing cash transactions only up to this defined limit as legal transactions can serve the purpose. And also, government should make strict/stern legal provisions against dishonored bank transactions.

Expectations from banks

The role of banking system can be compared to the circulatory system within the human body. Just like the blood vessels carry the essential nutrients to all the parts of the human body, the banking system is expected to supply the "money capital" to the all the individuals and the institutions.

Role of Capital in the economy is like that of the blood in the human body. As the blood carries the required nutrients to the individual cell, capital promotes productivity in the economic system. Any disorder in the circulatory system leads to disease in the entire body. Similarly, a flawed capital creation and distribution system has an equally debilitating effect on the economic system.

Banks will have a very special role to play. Since it has been proved over a considerable time period that present Banking System is quite reliable in view of its efficient operating standards, cultivated and trained human resource, least corrupt status among financial.

For more details http://www.arthakranti.org

Individual Benefits

I am businessman, What will I get from Arthakranti?

• No separate arrangement for tax payment.
  Tax is directly paid to government against every transaction. So business life will be stress free and tension free from arrangement of tax payments.
• Easy availability of capital.
  Capital is freely available, because the credibility of a person will be clearly established by the transactions in his account. Banks may no longer need to demand excessive collateral, and credentials for lending.
• Increase in foreign investments.
  Corruption is practically eliminated because the currency and networks of the parallel economy have been destroyed. The transparent and corruption-free taxation system will encourage foreign investment. Businesses, which are beneficial to the nation, can be allowed and the government can prevent those deemed harmful. This foreign investment would prove to be a booster to the national development.
• Fair and healthy business competition.
  With uniform taxation throughout the country, price levels throughout the country can be virtually equal. The distorting influence of local taxes is removed so we will have a common market in this country for the first time. This will result in fair and healthy business competition.
• Make up of import-export imbalance.
  The domestic manufacturing industry would get inspired to compete in the international market. This will make up the import-export imbalance, earn foreign currency and ultimately result in strengthening of the national currency.
• Long term business decisions.
  Industry can chalk out long-term policies for the growth of business, without fear of government policies abruptly changing and affecting investment decisions.
• End of risk of floating money.
  Because of sufficient money supply, the velocity of money circulation will accelerate, ultimately stabilizing the 'floating money'. The existing credit payment terms of 30, 60, 90 days would eventually be replaced by immediate payment. This would end the common risk of over-extending due to floating money transactions.
• Increase in profit.
  There will be no taxes, direct or indirect, to distort and destroy profitability and viability.
• More focus on service and quality.
  Tax is paid automatically in a easy and fair manner. Thus available money and other resources can be engaged in improvement of service and quality.

I am Farmer, What will I get from Arthakranti?

• Efficient marshalling of natural resources.
  Financially strong and efficient government will provide facilities such as dams, canals, reservoir etc. to overcome the dependency on monsoons and weather conditions.
• Improved efficiency of the agriculture sector.
  Government's increased investment in large infrastructure projects, good roads, transportation, distribution and storage facilities will improve the efficiency of the agriculture sector multifold.
• Easy access to credit at low rates of interest.
  Easy access to credit at low rates of interest will be available because of the restored credibility in the banking system.
• Latest technology and new techniques.
  Access to capital will enable access to the latest technology, which can bring farmer out of the routine and old farming techniques. Thus ensuring production efficiency and chance for experimenting new techniques.
• Profitable business.
  With improved and prosperous future in farming, it will regain its reputation as profitable and respectful business. Thus young generation will come back to farming instead of trying something else.
• Can stand up for foreign competition.
  Availability of finance at low rates and latest technology will empower him to compete internationally.
• Additional source of income.
  Efficient farming will strengthen the village economy providing avenues of side business which can earn additional income.

I am self-employed, What will I get from Arthakranti?

• No separate arrangement for tax payment.
  Tax is directly paid to government against every transaction. So business life will be stress free and tension free from arrangement of tax payments.
  
• Easy availability of capital.
  Capital is freely available, because the credibility of a person will be clearly established by the transactions in his account. Banks may no longer need to demand excessive collateral, and credentials for lending.
• Virtually equal price level throughout the country.
  With uniform taxation throughout the country, price levels throughout the country can be virtually equal. The distorting influence of local taxes is removed so we will have a common market in this country for the first time. This will result in fair and healthy business competition.
• Long term business decisions.
  Industry can chalk out long-term policies for the growth of business, without fear of government policies abruptly changing and affecting investment decisions.
• End of risk of floating money.
  Because of sufficient money supply, the velocity of money circulation will accelerate, ultimately stabilizing the 'floating money'. The existing credit payment terms of 30, 60, 90 days would eventually be replaced by immediate payment. This would end the common risk of over-extending due to floating money transactions.
• Increase in profit.
  There will be no taxes, direct or indirect, to distort and destroy profitability and viability.
• More focus on service and quality.
  Tax is paid automatically in a easy and fair manner. Thus available money and other resources can be engaged in improvement of service and quality.

I am employee, What will I get from Arthakranti?

• Less tax deduction from salary.
  Less part of salary will go into tax and I will be able to utilize returns of my work for myself & my family.
  
• Job security for me.
  More work opportunities will be available so pressure at work due to insecurity of losing jobs won't be there.
• Growth in desired career.
  Due to increase in work opportunities in different areas, I can make career in area of my own liking and ensure not only survival but growth.
• Increased purchasing power.
• Comfortable day to day life.
  Improved infrastructure will ease out my daily hassles such as traffic, water, electricity etc.
• More employment opportunities.
  Boost in capital formation process which will lead to employment opportunities in different sectors.
• Prosperous life.
  Due to abolition of taxes savings will increase. Desired expenditure and investment possible.

I am Doctor, What will I get from Arthakranti?

• Availability of more seats for education.
  More number of medical colleges, hence more seats available so better opportunity to follow my aim of taking and utilizing medical education.
• Reduced education cost.
  Cost of education will come down & educational loan will be available easily.
• Reduced cost of infrastructure.
  Better infrastructure in less cost hence financial burden is reduced and more focus can be given on serving people.
• No need to pay taxes separately as they are automatically cut.
• Credibility established as tax payer professional.
• Affordable treatment cost for patients.
  Heavy burden of indirect taxes from commodities is removed hence instruments will be less costly hence burden of cost of treatment from patients can be relieved and they can afford treatment.
• More opportunities for research.
  More opportunities for research as funding will be available and government can also start & encourage research & developmental projects in healthcare.
• Restored dignity.
  Dignity of the profession can be restored by giving focus on primary function of giving medical treatment.

I am IT professional, What will I get from Arthakranti?

• No botheration about taxes at all.
  No botheration about taxes at all, one will not even feel the pinch of such a small amount -> Investments can be focused to better propositions than tax saving options.
  
• Good infrastructure support.
  Good infrastructure support and smooth & efficient services from government -> Efficient & good quality public transportation, good road conditions, incorporating appropriate technology will help to maintain good environment conditions, leading to healthy life.
• Lot of business opportunities.
  Employees will not need to migrate away from home, as there will be lot of business opportunities all over.
• Secured Life.
  Secured life will be facilitated and peaceful living will be possible -> Terrorist activities and crimes will reduce a lot.
• Corruption free and reliable system to work with.
• Organizations will be free of heavy taxes.
  Organizations will be free of heavy taxes like excise duty, free of complicated taxes like FBT. More resources can be made to focus on R & D, generating more business opportunities, creating good quality products & services.
• Good quality education.
  Good quality education will be accessible to all deserving students -> it will produce more number of good quality skilled resources.

For more details http://www.arthakranti.org

Proposal Benefits

Proposal Benefits

• Adequate revenue with Government through Banking Transaction Tax.
• Government debts will be recovered.
• Decentralized revenue availability at all government levels
• Empowered Government - Cleansed political system
• High value cash transactions not possible.
• Opportunities for fake currency eliminated.
• Black money is eliminated.
• Banking revenue increased, cheap & ease of capital supply with interest rates as low as 3% for all types of loans
• Sufficient and appropriate subsidies will be given
• Tax burden relieved.
• Purchasing power increased across society.

Possibilities

• Building individuals credibility.
• Social security for every individual.
• Industries growth will boost.
• Employment generation.
• Prices will fall down appropriately.
• Opportunities for corruption eliminated.
• Dependency on anti-social industries will not exist.
• Business's focus shifting to innovation from Tax manipulation.
• Globally competitive business possible

Details on benefits

• All existing taxes are replaced by a single transaction tax on banking transactions.
• High denomination currency (say above Rs.50) is abolished.
• A legal provision is made to restrict cash transactions to say, Rs.2000.
• All existing high denomination currency gets deposited in the banking system and a transaction tax is deducted on it.

For More Details http://www.arthakranti.org

Arthakranti Proposal

(All Taxes and Duties of Central ,State and Local body Government except customs or import duties which functions as International Trade Balancer).

1. This deduction is to be effected on receiving/credit accounts only.
2. This deducted amount will be credited to different Government levels like Central, State and Local
   (say 0.7%, 0.6%, 0.35% respectively).
3. Transacting Bank will also have its share in this amount as the bank has a key role to perform
   (say 0.35%).

 

This means, Cash Transactions above this limit will NOT enjoy any legal protection