Promise on Black Money

Manish tiwari ji Mon, 31 Oct 2016

Promise on Black Money

Spokesperson: Shri Manish Tewari: He said that Prime Ministerji had promised to bring back the Black money stocked in foreign banks within 100 days.

If you remember in 2011, when the BJP had released their report, the task force they had constituted on black money, they had estimated the amount of alleged black money stowed in foreign banks was to the tune of 25 lakh crores. On 1st Feb 2011, Mr LK Advani, had released the Black Money Report. In 2015, after the NDA govt came to office, under the Black money Undisclosed Foreign Income and Assets and Imposition of Tax Act, they came out with an Amnesty Scheme which ran from 1st July 2015 to 30 Sep 2015. Under this Amnesty scheme, which applied to money stashed in foreign bank accounts , the total declaration was 4,164 cr only and the total tax collected was 2,428 crores.

If you quote this with 2011, the BJP says that the Indian money stacked in foreign banks is around Rs. 25 thousand crores and after the Bill was passed in 2015 against Black money, they now come with the Amnesty Scheme and the tax collected from it amounts to Rs. 2 thousand 428 crores.

Now you contrast this with the VDIS, that was brought by then UF govt in 1997. Under the VDIS, the total declaration was 33,000 crores, the tax collected was 10,000 cr. Nineteen years ago the Voluntary Disclosure of Income Scheme was launched and an amount of Rs. 33 thousand crores was declared and the Indian government collected Rs. 10 thousand crores as tax. This was 19 years ago.

The BJP NDA government launched The Income Disclosure Scheme 2016. Now government estimates were, that they will get 100,000 crores under the Amnesty scheme. With 45 % tax rate,

this would result in 40-50,000 cr as tax. By the middle of August, figures which are available suggest that only 4,000 cr in Tax has been collected. And by 30th September, just after 8 days, this scheme is going to get over. So the estimated tax collection- 50,000 cr, Estimated Declaration -100,000 cr, Tax collected till Mid August only 4000 cr. Now what has happened because of this failure is that the NDA BJP govt has launched a reign of Tax Terrorism across the country. From Lucknow to Ludhiana, from Baroda to Banaras, from Chandni Chowk to Chandigarh, you go to any major trading hub in the country and there are these horror stories as to how the small traders, small businessmen, the honest taxpayer is being
literally coerced in order to make declarations to fulfill the targets under this Income Disclosure Scheme 2016. And the bigger fish, the crony capitalists, the suit boot friends are enjoying and the small trader is being persecuted.

Why have you been able to collect only 2428 crore, where is the rest of 24 lakh odd crores which you had estimated and your task force had released the report, where is that money. Why haven’t you brought that money back or was that task force report only intended in order to throw sensational numbers in public domain. So we would like to ask the PM where is that 25 lakh cr. And the other thing we would like to tell the PM that Income Disclosure Schemes work on incentives, they do not work on intimidation. Monday, 12th September, 2016.