Senior economist Anil Bokil, who was the real brain behind the genesis of demonetization idea, has now criticized Prime Minister Narendra Modi for selectively implementing his advice, which led to chaos.
Speaking to a leading media house, Bokil explained what went wrong during the implementation of his brainchild.
“The proposal I placed before the PM had five aspects, which were framed after 16 years of brainstorm. However, the Modi govt. chose to implement only two of them. The move can neither welcomed nor be rejected and we are compelled to accept it. If the govt. had implemented all our five aspects, no one would have suffered,” he said.
Below are the 5 aspects advised by Bokil and his think-tank.
1: Complete abolition of taxes, direct and indirect by the Central or State governments and also the local bodies.
2: The taxes were to be replaced with Bank Transaction Tax (BTT), wherein every inward bank transaction would attract a levy. It would be a single point tax deducted at source. – The deducted amount would go into the government kitties at various levels (Centre, State and Local, broken up in perhaps a ratio of 0.7 per cent, 0.6 per cent and 0.35 per cent, respectively). The concerned bank will also get a share of say another 0.35 per cent. Of course, the BTT rate would be decided by the finance ministry and Reserve Bank of India.
3: Cash transactions would not attract tax.
4: All high denomination currency above Rs 50 should be withdrawn.
5: Government should create legal provision to restrict cash transactions to Rs 2,000.
All these aspects implemented together, would have changed the system. The move would have targeted only black money holders and common man would have been unaffected. Unfortunately, we have witnessed a few deaths.
“The government conducted the operation without using anesthesia, patients are bound to die,” he lamented.
Bokil is expected to meet the PM in New Delhi on Tuesday and suggest remedies.