Friday, 15 September 2017

Demonetization and fight against black money



Launch Date:  8.11.2016

Objective: A major war against black money was unleashed on 8th November with demonetization of Rs 500 and 1000 currency notes as the first step.

Achievements: There is a major fillip in digital transactions and unearthing of substantial amounts of black money.

Formation of SIT & curbing of black money
Special Investigation Team, SIT set up at the First Cabinet Meeting after the NDA Government assumed office

GST
  • One Nation, One Tax- One Nation-One Market
  • Passed by Parliament
  • To be rolled on July 1,2017
  • 4 Tax Rates- 5%, 12%, 18%, 28%
  • Reduction in overall taxes on goods ,estimated to be 25-30%
  • Lead to ease of doing business and increase in tax revenue collections.
Benefits of GST
Decrease in Inflation due to
  • Reduction in Cascading effect of Taxes
  • Overall Reduction in Prices

Ease of Doing Business due to
  • Common National Market
  • Benefits to Small Taxpayers

Decrease in “Black” Transactions due to
  • Self-Regulating on line Tax System
  • Non-Intrusive and transparent Tax System

More informed consumer due to
  • Simplified Tax Regime
  • Reduction in Multiplicity of Taxes

Poorer States to gain due to
  • GST being a destination based Tax
  • Consumer States to benefit the most
  • Abolition of CST

Make in India boost due to
  • Exports to be Zero Rated
  • Protection of Domestic Industry - IGST

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