Note-ban, GST have sown fear of 'tax terrorism': Manmohan Singh

Note-ban, GST have sown fear of 'tax terrorism': Manmohan Singh

Former prime minister Manmohan Singh argued the opposition's case, claiming that not only was demonetisation a flawed decision that had caused a needless disruption to the Indian economy, but it also risked unleashing harassment by tax sleuths probing illegal deposits.

Former Prime Minister Manmohan Singh on Monday in an interview with the press over demonetization and GST said that "the impact of demonetization on the weaker sections of our society and business is far more damaging than any economic indicator can reveal". While opposition parties have made a decision to observe Wednesday as a "black day", the BJP has dubbed it "anti-black money day".

Prime Minister Narendra Modi, on 8 Nov 2016 at the strike of midnight had announced that the currency note of 1000 and 500 will no longer be legal in India. Making a powerful defence of the exercise on the eve of one year of demonetisation, Jaitley said reform initiatives taken by the BJP-led government had lifted India's stature in the global economy, the measures preventing it from being knocked off the global radar and raising it to a position where all worldwide agencies have been eulogising the structural reforms.

Responding to critics of demonetisation, the Finance Minister said his government did not claim that note ban will put an end to corruption once for all, but it was certain that reducing the circulation of cash in the system had made indulging in corruption a very hard proposition. "I wondered who advised him to inflict such a reckless step on our nation, and whether any considered thought went into it", he said. Economics should take precedence over politics. He said it has met its objective of reducing cash in the economy, ending anonymity of cash, bringing more individuals into the tax net and dealing a body blow to black money. "I repeat, it was organised loot and legalised plunder", Singh said, referring to a similar statement in Parliament previous year. "Nowhere in the world any democracy has taken such a coercive step". They had broken the back of small businesses in States like Gujarat. He said structural reforms like the note ban would have consequences.

Demonetisation has proved to be a mere bluster to reap political dividends, while the real offenders have escaped, the former Prime Minister states.


"Measures such as demonetisation and greater digitization of transactions in the economy, introduction of the goods and service tax, linking of most financial transactions with Aadhaar are all steps which will greatly improve transparency, compliance and tax buoyancy", said Sudhir Kapadia, national tax leader, EY India.

'We saw the impact of demonetisation on the economy when the GDP growth rate dropped to 5.7 per cent under the new calculations. Even this is underestimated as the pain of the informal sector has not even been calculated, he added. Every one percent loss of GDP annually costs our nation 1.5 lakh crore rupees. "Instead of providing relief, as I had requested in the Parliament, the government chose to inflict on them a badly designed and hastily implemented GST".

Trinamul Congress chief and West Bengal chief minister Mamata Banerjee also hit out at the government, saying demonetisation was a big scam.

Citing statistics and examples, the former PM pointed out that the UPA's GST envisoned a single tax capped at 18%, while the current one has transformed it into a "complicated mess with multiple slabs".

Related:

  • Kate Upton, Justin Verlander say 'I do' in lavish Italian wedding

    Kate Upton, Justin Verlander say 'I do' in lavish Italian wedding

    After the 30 minute ceremony, guests descended stairs to the restaurant on the property for the reception. Verlander was dressed in a three-piece tuxedo, as were his ushers, and the bridesmaids wore pink.
    New Zealand win by 40 runs, level series 1-1

    New Zealand win by 40 runs, level series 1-1

    They lost to Australia by 49 runs in Bridgetown, 2010 and by 47 runs against New Zealand in Nagpur previous year . Hello and welcome to our coverage of the second Twenty20 worldwide between India and New Zealand at Rajkot .
    Bowling Green man charged with assaulting Sen. Paul

    Bowling Green man charged with assaulting Sen. Paul

    An address on file with the county lists Boucher as living in a gated community just east of Paul's home in Bowling Green. The attacker, 59-year-old Rene Boucher , was arrested and as being held in Warren County jail on a $5,000 bond.
  • Chelsea rocked by the departure of technical director Michael Emenalo

    Chelsea rocked by the departure of technical director Michael Emenalo

    Club chairman Bruce Buck remarked: "It is with regret that the owner and board of directors accepted Michael's resignation this week".
    Peace plea at Trump protest

    Peace plea at Trump protest

    They said South Korea's promises that it will not deploy additional parts of the THAAD system, will not join the U.S. US President Donald Trump never seems to miss a chance to take a swipe at North Korean leader Kim Jong-un.
    Lamar Odom Collapses In Los Angeles Nightclub

    Lamar Odom Collapses In Los Angeles Nightclub

    The former National Basketball Association star reportedly collapsed without warning, at which point security rushed to help him. In a March interview with Us Weekly , Odom indicated that he was turning his life around, mostly by trying to stay sober.
  • Pulwama encounter: JeM chief Masood Azhar's nephew killed; soldier martyred

    Pulwama encounter: JeM chief Masood Azhar's nephew killed; soldier martyred

    This clearly shows the complicity between the JeM and Pakistan and its nefarious designs in Kashmir", he said. Amid pro-freedom, pro-Pakistan and anti-India slogans Waseem was laid to rest, they said.

    StarCraft II Going Free-To-Play Starting November 14

    The changes also "promote more player control" regarding the game's state, and reduce sudden "game-ending moments". However, there are some limitations to which parts of the real-time strategy game will be open to all gamers.
    IDF ready to protect Druze town from Syrian rebels

    IDF ready to protect Druze town from Syrian rebels

    Israel has also provided medical treatment to thousands of people wounded in the fighting in Syria. The SOHR said government troops and allied fighters were among the casualties of Friday's clashes.
  • Carter Page testifies he told Sessions about Russian Federation  trip

    Carter Page testifies he told Sessions about Russian Federation trip

    Trump and a desire to work together toward devising better solutions in response to a vast range of current worldwide problems". Only 7 percent of Trump voters say they believe that members of the campaign team colluded with Russian Federation .
    Strangers ticketed for having sex on Delta flight

    Strangers ticketed for having sex on Delta flight

    Rather than fall in love, the two were caught committing a sexual act in their seats , and have since been issued citations. The woman was caught giving the man oral sex while the two were in their seats, the station further reported .

    Amano's visit to Iran due to United States misconduct over JCPOA

    Responding to Trump and his administration's attempts to isolate Iran diplomatically, Khamenei said his foes in the U.S. Additionally, a senior official accused President Donald Trump of a "crazy" return to confrontation with Tehran.

Comments

Latest news

Facebook brings Messenger payments to France and the UK
Social media mogul company Facebook has launched P2P payments through Facebook Messenger in the United Kingdom today. According to research by Kenshoo published in December 2016, 53% of French Internet users and 48% of U.K.

Disney Held Talks to Buy 21st Century Fox's Entertainment Assets
Chief Executive Bob Iger has said he plans to retire from Disney in July 2019, and the company is searching for a successor. The talks reportedly took place within the last few weeks, and it's not certain they will firm up a deal.

Thousands of Nicaraguans in the US Just Got Bad News
Nicaraguan immigrants, who have lived in the United States for almost two decades, will have 12 months to leave their homes. Already, 50,000 Haitian TPS recipients, who expect administrative decisions by Thanksgiving, are preparing for the worst.

Thrasher, FSU Ban Greek Organizations Indefinitely After Pledge's Death
Thrasher also announced an alcohol ban at all student organization functions. Coffey graduated from Pompano Beach High School in 2015. He was given medical treatment at the scene, but died.

New Details on Rand Paul Assault: Sneak Attack, Possible Political Dispute
Kentucky State Police Master Trooper Jeremy Hodges said he could not release details of the assault because of security issues. A news release from Kentucky State Police Post 3 in Bowling Green said troopers were called to the Paul residence at 3:21 p.m.

NZ not alone on ISDS clauses: Ardern
However, Mr Turnbull declined the offer, saying: "We thank New Zealand for making an offer, we are not taking it up at this time". Turnbull held bilateral talks with New Zealand leader Jacinda Ardern at Kirribilli House in Sydney this morning.

Koenigsegg Agera RS sets highest speed world record for production vehicle
The small Swedish automaker's Agera RS supercar has claimed the title of World's Fastest Production Car at 277.9 miles per hour . Towards the end of the second run, the Agera RS even surpasses 450 km/h - close to the speed of a small aircraft.

Nokia 5 with 3GB RAM launched at Rs 13499
Priced at Rs 13,899, the device has a capacitive touchscreen measuring 5.2-inch and with 720x1,280 pixels (282 ppi pixel density). Apart from the difference in RAM, all other specifications of the new and old Nokia 5 models are exactly the same.

Special Counsel Mueller has enough evidence to charge Flynn, son
Another former Trump campaign aide, George Papadopoulos, has pleaded guilty to lying to the Federal Bureau of Investigation . Sanders had also said President Donald Trump "has confidence they're going to close this up soon".

At least 20 deaths after church shooting outside San Antonio, Texas
A gunman shot dead at least 20 worshippers during Sunday morning services at a Baptist church in Texas , news media reported. Video on KSAT television showed first responders taking a stretcher from the church to a waiting AirLife helicopter.

Netanyahu: Resignation of Lebanese President Highlights Iranian Danger
When he took office, Hariri promised "a new era for Lebanon", which had been in a political deadlock for two years. Hezbollah's leader urged Lebanese citizens to refrain from protesting in a bid to stave off escalating tensions.

Bush Sr and Jr openly condemn Donald Trump
In light of Trump's anti-trade, anti-immigration agenda that runs counter to decades of GOP dogma, George W. This is the first time that both former presidents have spoken out publicly to disavow President Trump.

Did you keep in mind to set your clocks back?
Make sure everyone in the household knows how to get out of every room and how to get out of the home in less than two minutes. Both hardwired and battery operated smoke alarms are required to be replaced every 10 years.

Paris Masters: Filip Krajinovic beats John Isner to reach final
The 32-year-old Isner forged a break point at the start of the third set, but missed it with a wasteful forehand which went long. But I think it just goes to show how physical tennis is, especially with someone like Rafa who's played a lot this year.

Slaven Bilic to hold talks with West Ham United chairmen
We shouldn't rule out a West Ham comeback, after all they did so from 2-0 down against Tottenham at Wembley in the Carabao Cup. "At the moment, we have to stick with those experienced players who have to make it up and take us out of this situation".

Other news