Demonetisation: News, Updates & Discussions

http://www.hindustantimes.com/india...-collection/story-O3YsryY0WtdefZy8vdBMFM.html

Civic agencies are recording a demonetisation windfall as people are taking advantage of schemes to clear longstanding tax dues with abolished 500- and 1,000-rupee notes.

But experts believe the returns don’t reflect improved efficiency in tax collection.

Figures provided by 47 urban local bodies to the Union urban development ministry show their tax collection increased by 268% in November 2016 compared to the same period last year.

These municipalities collected Rs 3,607 crore last November. But the corresponding figure till November 22 this year is Rs 13,192 crore already.

A majority of this tax has been collected after November 8, the day Prime Minister Narendra Modi announced scrapping of the high-value notes. The collection figures for the preceding months were far less.

Mumbai municipality’s tax collection has been Rs 11,913 crore this month, which way better than the Rs 3,185 crore it collected last November. Surat’s municipal revenue increased from a mere Rs 7.19 crore to Rs 100 crore.

The fantastic returns could be attributed state governments’ special schemes for taxpayers to pay their dues — some of which are said to have been unsettled for years — with the demonetised notes.

“This is the positive effect of demonetisation. People are clearing up their old dues, paying with Rs 500 and Rs 1,000 notes. For the urban local bodies, it has meant substantial mopping up of tax collection,” urban development minister M Venkaiah Naidu said.

But expert Srikanth Viswanathan, the CEO of advocacy group Janagraaha, called the increase in municipal revenue a reflection of people using up their defunct notes, rather than an indication of improved tax efficiency.

“The municipalities’ own revenues continue to be in the range of 1-1.5%, far less than in countries such as Brazil and South Africa. But the increase does reflect the huge potential from such revenues once the entire property tax administration is overhauled across urban local bodies,” he said.

Viswanathan said municipalities could transform the system by levying property tax on rational market-oriented base capital values, ensure a good tax assessment register and significantly improve their collection efficiency through spatial analytics and outsourcing.




* Figures till November 22, 2016 (HT Graphics)

 

More data will be forthcoming in due course. We can discuss this further a few months down the road too. I am in no rush to judge.

 

True. The Economist is more about political propaganda than economics.

 

"Final Solution", "Gas Chambers", "Bengal Famine"

 

They basically have such article frameworks ready to go, and they fill it in with whatever X Y or Z is the current topic of note.

Leftists generally leave all the thinking for others to do and indulge in parroting. Fun to make them squawk though when the opportunity presents itself

Meanwhile, really bad news :

http://timesofindia.indiatimes.com/...rows-5-7-in-november/articleshow/56501273.cms

http://timesofindia.indiatimes.com/...spite-demonetisation/articleshow/56508354.cms

 

I am a little disappointed it does not have any Manuwadi/Brahmanwadi in it , they usually find a way to sneak it in somewhere, But I guess this is meant for a foreign audience

Oh No Mudi must answer!

 

http://www.business-standard.com/ar...ation-rises-to-7-3-nomura-117012700617_1.html

Rural wage growth defies demonetisation, rises to 7.3%: Nomura

 

A few weeks back the media and oppn were shedding crocodile tears for the poor/farmers and screaming to halt demonetisation for the sake of these poor folks, there is now a defeaning silence from them as the picture is becoming less hazy and the positive effects are being seen.

 

The only issue was time and stupidity of Indians. We have the printing running 24 hours even now. There was ample supply of currency notes ready by mid December, well within the 50 days as stated by the PM. However, there was an artificial shortage being propagated by ensuring hoarding of currency notes as also creating a relative shortage by ensuring a mass anxiety by daily reports in media of currency shortage.

Remember the prime time coverage on TV news channels about currency shortage? It merely ensured more people lined up out of anxiety.

A great exercise and unfortunately for the opposition, the people faced hardships, yet they fully supported the move and now it is reaping benefits.

 

Well Govt implemented this move or taken this risk based on an objective....... The question is did the govt achieve the objective???? Even if we have achieved certain percentage of the objective, was it worth the trouble it given to the population???

Personally I do not mind the trouble i gone thru provided the committed benefits are recieved (by govt).......

Let us not forget the deposits have been much much higher than the anticipated one.....

 

Have to give time for the I-T sleuths to go through all the deposits that are questionable to ascertain proper figure in the end. This will take some more months at least.

 

At initial stage ,black money holders shocked but lately they were successful in whitening their illegal money.
I would say ,two positive things happened.1.Rise in formal economy and tax inclusion
2.Total paralysement of human trafficking and FICN

 

But it is quite doubtful whether they can pullout all those within time .

 

What time are you talking about? There is some deadline?

 

Within March 31