Black Money stashes are not Turning into rubbish, but the government’s stated objectives are
Three weeks ago, the decision to scrap 500 and 1000-rupee notes was sold as a moral crusade, indeed, as a war on corruption. This narrative has now fallen apart. On November 29, Lok Sabha forced through a bill that ends the war and assures safe passage to those who hold black money in cash.
Read Tony Jacob former Editor, Business World in The Indian Express. The Article May be Read Here. In brief, the author says that
The bill is an invitation to those who have kept their undeclared income in cash to pay the government half of it (including tax, penalty and surcharge) and in return, turn the balance 50 per cent into legal white money. They would also need to lock in half of the new, legally- laundered money in a bond specified by the government for four years. The lock-in is certainly an inconvenience but not a loss to the black money holders because they would not have been getting any interest on their cash hoards any way. The new scheme is a generous offer when compared with the original statements made by the government that any black money holder found depositing denotified currency in banks would face a 200 per cent penalty and thus lose nearly all of his stash.