Experts says: India may go cashless soon, After demonetisation of Rs. 500 and 1000 Notes : The brain behind the demonetisation scheme is “Arthakranti Pratishthan” – a think-tank. In an interview to Asian Age, a senior member of think tank – Amod Phalke said that the demonetisation move has made the way for introduction of a Banking Transaction Tax (BTT). As per the think tank, BTT will lead to the abolition of all taxes in India such as VAT, excise duty, Income tax, and GST also.
Phalke, tell about the BTT, said that people would have to pay 1-2 per cent tax on the amount credited or deposited in their bank accounts. This deducted amount will be distributed among Central, state and local bodies. BTT will raise 21 lakh crore taxes which is equivalent to all the taxes raised by the Centre and states together.
Phalke said that if you will see any other country’s economy like the US, people do not keep huge cash with them. But it is vice versa in India, due to high denomination notes people have been out of the financial inclusion.
He said that in its new plan, government did not want people to be penalised even for depositing 100 crore in banks. The taxation system was defective. So these people should not be penalised for depositing huge sums of money. The government may take 10 per cent as tax and pay back the rest in 15 years as bonds or something similar.
Phalke further said that it was only a matter of time for their other related proposals to be implemented. It will be implemented either in 2017-2018 or 2019. People have realised the power of our plan.