Only ‘Taxless’ India Can Uproot Black Money, Says Man Who Gave Idea of Demonetisation to PM Modi

New Delhi, November 7: Demonetisation was a big and bold decision by the government but to eliminate black money the government needs to abolish the current taxation system, says Anil Bokil the man wh

New Delhi, November 7: Demonetisation was a big and bold decision by the government but to eliminate black money the government needs to abolish the current taxation system, says Anil Bokil the man who gave an idea of note-ban to Prime Minister Narendra Modi before it was implemented.

According to a report, Anil Bokil is the founder of Arthakranti – the organisation that made a five-point presentation on demonetisation to PM Modi.

In an interview, Bokil said that demonetisation is incomplete without the other steps in his formula which includes a banking transaction tax replacing all other taxes.

It was a nine-minute presentation that convinced PM Modi to go ahead with the decision on demonetisation. Bokil, a mechanical engineer and a Chairman of Pune based think-tank made this suggestion.

“In our perspective, the exercise was not demonetisation but was just de-currencyfication. Since government’s demonetisation exercise only pertained to the currency money in circulation, the word ‘demonetisation’ is inappropriate. Instead, the phrase ‘note ban’ correctly describes the exercise,” Bokil said in an interview to Economic Times.

He suggested several steps that could be taken to end the menace of black money and fake currency.

In his nine-minute presentation, here is what Anil Bokil said:

Ban notes of Rs 500, 1,000 and even Rs 100. All transactions must take place through banks with the help of cheques, demand draft and online.

Single baking system for revenue collection except for import duty, stop the collection of money under 56 different taxes. Bokil also justified his suggestions by saying that the country’s 78 percent population spends only Rs 20 a day. Hence they do not require big currency notes.

Bokil said that in India an average transaction of Rs 2.7 lakh crore is seen daily which accounts a to Rs 800 lakh crore per year. However, only 20 percent transactions out of this take place through banks. The rest all takes place through cash which cannot be traced. Wih Bokil’s presentation, PM Modi was impressed and the ban was set in motion, a news report said.