Using the information given below with your own views, write an article on ‘War on Black Money in India’.
Hints: • Crackdown on black money • G20 summit in London • era of banking secrecy over • India, a foreign supporter of the move • black money a political football in India • rather than looking for foreign hand battle must be waged at home unless generated at home money can’t be transferred abroad • tax rates must be moderate and simple • time to push ahead of the new direct tax code.
Ans. War on Black Money in India
‘More smoke than light’ has been generated by the current outcry on black money. People think that there is a lot of money out there in Swiss banks. Black money does not remain black money forever. A lot of foreign funds and investments come back to India as white money. Income generated through illegal activities is the basis for generating black money. Global terror business, drugs, arms dealing, real estate, hawala transactions, to name just a few, create `black money’.
Fortunately, the global crackdown on black money has begun. The G20 summit in London gave a clear message. The era of ‘banking secrecy’ is over. India is a strong supporter of this move. Black money has become a political football in India. The government must bite off only what it can chew. The success in getting black money depends on international actions and cooperation among nations. Rather than looking for the foreign hand, the battle against black money must be waged at home. Unless black money is generated at home, unaccounted money can’t be transferred abroad. Centre and states need to work on reforms. Tax rates need to be moderate. The laws must be simple. There should be no temptation to evade. It is time to push ahead with a new direct tax code. This is a long-drawn-out battle and can be won with a lot of patience and sincerity on the part of the government and the people of the country.