Monday, April 23, 2012

Tid Bits Tax-free India


(1)                                                                                                                        (TFR-1/apr)
Respected Member of Parliament    (Letter by email to over 200 MPs)

Sir

God has bestowed our country with enormous resources. It is now becoming abundantly clear that sufficient revenues can be generated if our National resources are managed properly, efficiently and honestly, eliminating the need to levy various kinds of Direct and Indirect taxes and borrowing  huge amounts.. In the Budget for 2012-13 the Hon’ble Finance Minister has projected Revenue from Taxes at Rs. 10,77,612 crores and borrowing of Rs.4.79 lac crores. Income from non-tax sources is only Rs.  1,64,614 Crores, a mere 13.25% of total revenue, which is the real income of the country from its assets.   It is astonishing that income from real assets of the nation are lightly termed  as ‘Non-tax Revenue’.

Presently these valuable National Assets are being doled out to Big Business for a pittance.  Please log on to http://mka43.blogspot.in/2012/03/tax-free-regime-in-india.html to evaluate our concept.

So far approach of our Governments has been Tax-centric and Debt-centric to meet our expenditure. Real prosperity comes by leveraging one’s assets.  Hence, we request you to bring a paradigm change in Government thinking.  Let us explore the full potential of enormous national resources.  You may be surprised there has been no emphasis in the Budget proposals what the Hon’ble Finance Ministers propose to do to augment revenue from Non-tax sources. For example, Income from Non-tax sources is projected at a substantially lower level to 13.25% in 2012-13 from 21% in 2010-11 without giving any reason in reduction of income.  If serious efforts are made to multiply income from National assets over next few years to ten times, then there shall be no need for any kind of taxes.

We, therefore, most humbly request you to please ask for following information from the various Ministers of Government of India and your State, who are the trustees of physical and abstract National Assets of various kinds:

What are the physical and abstract assets under your Ministry that can be commercially leveraged to earn revenue by way of Sale, Lease, Rent,  Grant of Exploration rights, grant of Mining rights,  Grant of License, Grant of long-term Lease, Grant of Development Right, Grant of higher FSI, or in any other manner? Out of such National assets what income is being generated?  Do you think more income can be generated from these assets, if yes, how many times more?”

Please give it a serious push up to the highest levels beginning with the debates in the current Budget session.  We shall be highlighting this serious issue at all forums nationwide in national interest and we look forward to your strong support.

Respectful regards.

M.K. Agarwal
Mission World Peace
Mumbai

P.S. Since our Legislators and Bureaucrats are not expert entrepreneurs to manage the National Assets effectively, please consider appointment of expert CEOs to manage them and generate optimum revenue from these valuable assets.



(2)                                       Letter by email to many Ministers          (TFR-1/apr)
Respected Minister
Government of India

Sir

God has bestowed our country with enormous resources. It is now becoming abundantly clear that sufficient revenues can be generated if our National resources are managed properly, efficiently and honestly, eliminating the need to levy various kinds of Direct and Indirect taxes and borrowing  huge amounts.. In the Budget for 2012-13 the Hon’ble Finance Minister has projected Revenue from Taxes at Rs. 10,77,612 crores and borrowing of Rs.4.79 lac crores. Income from non-tax sources is only Rs.  1,64,614 Crores, a mere 13.25% of total revenue, which is the real income of the country from its assets.   It is astonishing that income from real assets of the nation is lightly termed as ‘Non-tax Revenue’.

Presently these valuable National Assets are being doled out to Big Business for a pittance.  Please log on to http://mka43.blogspot.in/2012/03/tax-free-regime-in-india.html to evaluate our concept. 

So far approach of our Governments has been ‘Tax-centric and Debt-centric’ to meet our expenditure. Real prosperity comes by leveraging one’s assets.  Hence, we request you to bring a paradigm change in Government thinking.  Let us explore the full potential of enormous national resources.  You may be surprised there has been no emphasis in the Budget proposals what the Hon’ble Finance Ministers propose to do to augment revenue from Non-tax sources.  For example, Income from ‘Non-tax sources is projected at a substantially lower level to 13.25% in 2012-13 from 21% in 2010-11 without giving any reason for reduction of income.

We, therefore, most humbly request you to please ask for following information from the various Departments in your Ministry. Sir, you are the trustee of various kinds of physical and abstract National Assets of: the country.

‘What are the physical and abstract assets under your Department that can be commercially leveraged to earn revenue by way of Sale, Lease, Rent,  Grant of exploration rights, grant of Mining rights,  Grant of License, Grant of long-term Lease, Grant of Development Right, Grant of higher FSI, or in any other manner. Out of such National assets what income is being generated?  Do you think more income can be generated from these assets, if yes, how many times more?”

Please give it a serious push to augment generation of optimum revenue from the assets under your Ministry.  We shall be highlighting this serious issue at all forums nationwide in national interest and we look forward to your strong support in our endeavor.

Respectful regards.

M.K. Agarwal
Mission World Peace
Mumbai

P.S. Since our Legislators and Bureaucrats are not expert entrepreneurs to manage the National Assets effectively, please consider appointment of expert CEOs to manage them and generate optimum revenue from these valuable assets.

(3)      Face Book                                                                                 17.4.12
Our Central and States Govt. Budgets are Tax and Expenditure oriented. Higher the expenditure, higher the amount available for corruption. Make the Budgets Income oriented; the Finance Ministers should tell the country what the government has earned from enormous assets and rights at its disposal in the last year and what is its target for this year. Take away their power to levy taxes and borrow money to fund the expenditure to make India Tax and Debt free.         

(4)        Face Book                                                                   17.4.12

Our Governments have unbridled power to borrow money.  Higher the borrowing, higher the rate of interest, higher the prices.  Poor common man paying the price through its nose.  What the Governments need to do is earn money from vast national assets at its disposal.  They are doling these assets for pittance to Big Business for selfish gains.  My countrymen – Wake up! 

(5) Face Book 
Take away the power of Finance Ministers to levy taxes and borrow money to fund expenditure.  Ask them to generate income from enormous National assets at the disposal of various Ministers and Departments: 

(6) Face Book 
Our PSUs would not have become sick if the Finance Minister was to report its performance in the Budget.. 

(7) Face Book 
Pl visit our website www.missionworldpeace.org for spiritual knowledge and our concept of 'One World Government'.  We shall be obliged to receive your comments. Warm regards.

(8) Face Book 
The country should elect that person and that party who understand that God has bestowed our country with enormous resources; that sufficient revenues can be generated from these resources every year eliminating the need to levy various kinds of Direct and Indirect taxes and borrowing huge amounts. His commitment should be to put a freeze on taxes and raising loans, he should be committed to make India gradually ‘Tax Free and Debt free.  

 (9)  Face Book 
Join ‘Tax-free India’ group. The objective of Tax-free India Club is to motivate our Central and State Govts. to put a freeze on taxes and sovereign debt ; Govt. should focus on generating revenue from enormous national assets.and start reducing all kinds of taxes and debt…

(10) Face Book 
An open letter to Finance Minister

So far approach of our Governments has been ‘Tax-centric and Debt-centric’ to meet our expenditure. Real prosperity comes by leveraging one’s assets.  Hence, we request you to bring a paradigm change in Government thinking - put a freeze on taxes and sovereign debt ; Govt. should focus on generating revenue from enormous national assets, reducing all kinds of taxes and debt and ultimately make India Tax and Debt free.

A wise man will leverage his own Assets, Taxing people is extortion, borrowing money is bankruptcy of entrepreneurship.  Our Rulers are expert in raising Taxes and borrowing but doling out national assets for peanuts. Get a glimpse of enormous national assets at:   http://mka43.blogspot.in/2012/03/tax-free-regime-in-india.html   If Central and State Govts. Start focusing raising revenue from these resources then there shall be no need for levying taxes and borrowing.

(11) Face Book 
An open letter to Finance Minister,
Sir

Total Receipts estimated in the Union Budget for the FY 2013-14 are Rs. 14,90,925 Crores. Out of which:
1.       Rs. 7,71,071 Crores i.e. 51.72% comes from Direct and Indirect taxes.
2.       Rs. 5,55,241 Crore i.e. 37.24%  from Borrowings and other liabilities
3.       Only Rs. 1,64,614 Crores, i.e. 11.04% comes from real Assets of the country casually termed ‘Non-tax Receipts’.
This proves that our financial planning is Tax centric and Borrowing Centric;
Our Rulers have been ignoring the potential of raising revenues from the Real assets of the country. These assets have enormous potential to earn sufficient revenue to do away with the need to levy taxes on public and borrow money sinking the country in a Debt trap like European countries.  The country shall be paying an interest of Rs. 3,19,759 crores as interest on these borrowings i.e. 21.45% of the total revenue goes to pay interest on borrowings.
India can be a ‘Tax-free and Debt-free’ country if our Rulers start leveraging the enormous resources of the country intelligently and honestly for the benefit of the country!
You are well aware of our National assets but still we give a glimpse of enormous national assets at: 
Warm and respectful regards,
M.K. Agarwal
Mission World Peace
Mumbai

(12) Facebook Book                                                                                                  22.4.12

 ‘Ek Idea jo badal de apki dunia – ask your rulers the account of enormous national assets at their disposal; what they earned, for the country, from them in the year gone and what they shall earn during the current year.  If the revenue from National assets starts flowing into the exchequer even half, then there shall be no need to levy any taxes or borrow money.  Get a glimpse of National Assets at:

(13) Facebook Book                                                                                                23.4.212
Ask every State and Central Minister what he/she has earned from the enormous National Assets and Rights available to him/her during the year gone and what is the target for the coming year.  The responsibility to generate revenue from National Assets lies with the respective Minister.  In the changed paradigm Finance Ministers would be only Chief Accountants cum Financial Controllers with their powers gone for levying taxes and borrowing money. Aim for gradual transition to ‘Tax and Debt free India’ from the present philosophy of generating revenue from Taxes and Loans.



(14)    24.4.2012                                                                         Facebook
Govt. Sinking the country into Debt Trap
Do you know that the Personal Income tax and Service tax that Government recovers from all of us is insufficient to pay Interest on borrowings! 
                                                                                           Rs. Crore

Actual
.B.E.
Rev.BE
BE

2010-11
2011-12
2011-12
2012-13
Personal Tax
146587
172026
171879
195786
Service Tax
71016
82000
95000
124000
Total
217603
254026
266879
319786
Interest Payment
234022
267986
275618
319759
Short fall
16419
13960
8739
-27

Instead of managing enormous national assets properly, efficiently and honestly, Government is taking the easy course of raising Taxes and Borrowings.  Ask the Government to come clean and work for people’s welfare – stop enriching the privileged 2% at the cost of  98%; bring the enormous income from National assets into the exchequer ! transform India into a Tax and Debt free nation – a role model for the whole world.


(15)      25.4.2012                                                                  Facebook
Economic Times 25.4.2012
‘Spectrum Sale Can Fetch govt. Rs. 7 L Crore in 10 yrs.

If one small stream of National Asset can raise such a huge amount then imagine what the country can earn from all its National Assets.  Hence, please vote for that Leader and that Party who undertake to commit:
i)      That henceforth there shall be no increase in any kind of taxes and no increase in sovereign borrowing.
ii)     That the Finance Minister shall begin his Budget Speech by highlighting what revenue has been generated from National Assets in the year gone. National Assets shall be the prime source of Revenue Receipts and not casually termed as ‘Non-tax Revenue’,.
iii)     What is the target for the ensuing year of enhancing revenue from the National Assets.
iv)        What shall be the reduction in all kinds of taxes during the coming year – minimum expectation being of 5% (1/20th).
v)       How much sovereign debt shall be reduced in the coming year – minimum expectation being  5%.(1/20th).
vi)       By which year the country is expected to become ‘Tax And Debt free’.
                     
(16)     25.4.2012 Letter sent to PM, some Ministers and MPs by Email:


Respected Sir

At the direction of God Almighty I have embarked on a campaign – ‘Tax and Debt Free India’. Some of your senior associates have found merit in my concept and have advised me to convey my concept directly to you.

Sir, First some hard facts:
 Total Receipts estimated in the Union Budget for the FY 2013-14 are Rs. 14,90,925 Crores. Out of which:
1. Rs. 7,71,071 Crores i.e. 51.72% comes from Direct and Indirect taxes.
2.   Rs. 5,55,241 Crore i.e. 37.24%  from Borrowings and other liabilities
3.   Only Rs. 1,64,614 Crores, i.e. 11.04% comes from real Assets of the country which are, sadly, casually termed as ‘Non-tax Receipts’.

This proves that our financial planning is Tax centric and Borrowing Centric;

Our Rulers have been ignoring the potential of raising revenues from the Real assets of the country. These assets have enormous potential to earn sufficient revenue to do away with the need to levy taxes on public and borrow money sinking the country in a Debt trap like European countries.  During FY 2012-13 the country shall be paying a huge amount of Rs. 3,19,759 crores as interest on these borrowings i.e. 21.45% of the total revenue and debt. 

Sir, India can be a ‘Tax-free and Debt-free’ country if our Rulers start leveraging the enormous resources of the country intelligently and honestly for the benefit of the country!  Presently, these valuable assets are doled out to Big Business for pittance.

You are well aware of our National assets but still we give a glimpse of enormous national assets at:   http://mka43.blogspot.in/2012/03/tax-free-regime-in-india.html

Sir, in the next two years, before the 2014 General Elections, Indian public will become aware of the fraud being played on them through, this campaign.  They will vote for that Leader and that Party who will promise the following  -
i)      That henceforth there shall be no increase in any kind of taxes and no increase in sovereign borrowing.
ii)     That the Finance Minister shall begin his Budget Speech by highlighting what revenue has been generated from National Assets in the year gone. National Assets shall be the prime source of Revenue Receipts and not casually termed as ‘Non-tax Revenue’,.
iii)     What is the target for the ensuing year of enhancing revenue from the National Assets.
iv)        What shall be the reduction in all kinds of taxes during the coming year – minimum expectation being of 5% (1/20th).
v)       How much sovereign debt shall be reduced in the coming year – minimum expectation being  5%.(1/20th).
vi)         By which year the country is expected to become ‘Tax And Debt free’.
  
 Sir, I most humbly request you to please make a serious evaluation of the concept after making deep research.  I, on my part, am committed to pursue this campaign till I succeed in fulfillment of my duty to God, like Hanuman ji. 

 Warm and respectful regards,
M.K. Agarwal
Mission World Peace
Mumbai



(17)                 26,4,2012                                          Facebook


Times of India 26.4.2012
‘S&P cuts India outlook to negative…
Our Finance Minister says “No need for panic. The situation may be difficult, but we will be surely able to overcome.  Pranab Mukherjee.

Really No Need to panic Mr. Mukherjee; simply because the loans that you are raising and sinking the country into a irretrievable Debt trap will not be paid by you; they will be paid by our future generation.  You continue borrowing in which you have expertise.  And continue to dole out huge national assets to Big Business for pittance! 

Wake up my Countrymen! Don’t be fooled by such assurances, see the reality which the world is seeing.

Do not wait for elections, force the Government from right now to plough in the huge income from national assets into national exchequer - no more filling private pockets!  Begin the process of making India a ‘Tax and Debt free’ country!

(18)        Facebook                                    27.4.2012


Action Plan – ‘Tax And Debt Free India’                  (1)
In pursuance of our campaign for a Tax and Debt Free India, we proceed to present an action plan to achieve this noble objective.  Step by step, over the next few weeks, we shall highlight venues from where Govt. can earn more revenue from the various National Assets and Rights at its disposal to replace loss of income from Taxes and Loans to meet not only the present expenditure but also to enlarge peoples’ welfare plans.  Reducing the Taxes and Loans at a minimum of  5% (1/20th) per annum, the country shall become totally Tax and Debt free in 10-12 years.

Significantly, the mere announcement that henceforth there shall be no increase in any kind of taxes and sovereign borrowing, and that taxes and loans shall be reduced by minimum 5% per annum, will have many salutary effects like -:
(a)     The interest rates shall begin falling.
(b)    Reduction in taxes shall put a brake on Inflation and the prices shall start  coming down.  The inflation is not due to shortage of goods, it is mainly due to hoarding by Big Business and creating artificial shortage. The rod of reduction in taxes and interest every year will force the hoarders to offload their stock before the end of the year.
(c)  Reduction in interest shall bring down the cost of production, enabling producers reduce their prices. Reduced prices shall give a boost to demand - result faster GDP growth.
(d)  Reduction in Loan every year will bring down the interest burden on the Government in two ways – in absolute terms on amount repaid, and secondly due to reduction in interest rate.
(e)  Reduction in borrowing will enhance country’s rating in International markets.  This will facilitate inflow of foreign capital at low cost – another booster to GDP growth. This will be our reply to S&P downgrading our economy.          (To be continued…)

(19)                                      28.4.2012
Action Plan – ‘Tax And Debt Free India                  Contd…( 2 )
The Demon of Sovereign debt

Sovereign debt sustainability a political issue: Duvvuri Subbarao (Governor RBI)

"Sovereign debt sustainability is not like price stability. It is a political issue. How much debt the government raises and how they raise that debt, are a political issue…

All our political parties, at the Centre, in States, Municipal Corporations and in local bodies, have made borrowing a State Policy.  Debt is a demon which you can create any time and of any size but once created you can not put it back in the bottle. Look into the accounts – called Budgets, of any Government body at any level, you will find Debt as a significant source of ‘Revenue Receipt’ – easy way to raise money.  Initially the debt provides funds but soon the interest on it becomes so much that borrowing becomes a necessity to pay Interest on it.  Own income falls short to pay even the interest what to say of Repayment. Didi Mamta is now forced to ask for three years moratorium to pay the interest  - not the repayment. 

Presently, we shall bring to the attention of our simpleton public – the ‘aam aadmi’, the state of Sovereign debt at the Central Government level.
Total outstanding Sovereign Debt in 2004-05:was Rs. 19,94,422 crore, The UPA Govt. continued to borrow and it went up to  Rs. 34,95,452 crore in 2009-10. That means they borrowed further Rs. 15.01 lac crores in five years, at an average of over Rs 3.00 lac crores per year. UPA II has continued with its borrowing spree – a political decision, and have further added Rs.2.19 lac Cr in 2010-11, Rs. 4.22 lac cr in 2011-12 and will add Rs. 3.89  lac crore in the current year 2012-13.  Thus on 31st March 2013 the country will owe about Rs. 45.25 lac Crores.  Significantly, the Hon’ble Finance Manager takes big pride by claiming that this colossal amount is only 45.31% of GDP whereas the 13th Finance Commission has approved a target of 50.5%.
To be continued…
For details pl log on to: http://tax-freeregimeinindia.blogspot.in/2012/04/tax-free-regime-in-india_07.html

 (20) Facebook              29.4.2012
Tax and Debt Free India
The Demon of Sovereign debt                                     Contd  (2)
Bogey of GDP: Governments mislead the common man by relating the humongous loan burden on them by relating it to GDP.
Sovereign Debt will rise to about Rs. 45.25 lacs during the FY 2012-13 . The Hon’ble Finance Manager has taken great pride by claiming that this colossal amount is only 45.31% of GDP whereas the 13th Finance Commission has approved a target of 50.5%, in his Budget presentation.

GDP is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.   Obviously, GDP is much larger than the Government Revenue. Hence the ratio of Sovereign debt to GDP appears to be a smaller ratio. In fact, the ratio of Debt should be related to Gross Revenue.  It will then be 59.35%., in other words more than half the money for expenditure comes from debt – every year.

GDP is not the amount that is available to the Government for meeting its loan liability or any other expenditure. The money for payment of interest on debt and for repayment will come from Revenue Receipts. The gross Revenue Receipt of the country is estimated at Rs. 9.35 lacs comprising of Rs. 7.71 lacs as Tax Revenue and Rs. 1.64 lacs as Non-tax Revenue (Non-tax Revenue is the income from national Assets and Rights and the Real Income of the country). The interest outgo on sovereign debt is estimated at Rs. 3.89 lacs for the FY 2012-13.  that leaves a balance of only Rs. 5.46 lacs for expenditure.  The Revenue and Plan Expenditure is planned at Rs. 14.90 lacs. Therefore, the country will have to necessarily take further loan of Rs. 5.55 lac crores to meet the gap between Income and Expenditure.  Thus we are now necessarily in deep Debt Trap.

The country will never be able to come out of this vicious circle unless the Real income of the country is increased.  The need is to bring the income from the Real assets of the country into exchequer and not doling it out to big business for pittance.   The country will regain its lost status of  ‘Golden Bird’ when our Rulers start bringing into the exchequer fair value of National assets – doling it out to Big Business for pittance has sunk the country into a ‘Debt Trap’.      (…To be continued)

For details pl log on to: http://tax-freeregimeinindia.blogspot.in/2012/04/tax-free-regime-in-india_07.html


(21)  Facebook              30.4.2012

Friends, I invite you to join me actively in the noble campaign of making India a ‘Tax and Debt free’ country.  For this, all you have to do is send an email to the FM at pkm@sansad.nic.in   on the lines as per draft given below.  You can modify the contents of your email as you deem fit and proper. After sending the email please post the copy on your Wall. 

Hon’ble Shri Pranab Mukherjee
Finance Minister of India
pkm@sansad.nic.in

Sub: Tax and Debt Free India

Dear Sir

We, the citizens of India, request you to kindly bring a paradigm shift in the financial planning of the country.  In your Budget you have proposed to raise Rs. 7.71 Lakh Crores (51.72%) from Direct and Indirect Taxes, Rs. 5.55 lakh crores (37.24%)  from Borrowing and only Rs. 1.64 lakh crores (11.04%)  from ‘Non-tax’ sources.  Thus, your approach so far has been Tax and Debt Centric.

Sir, you will agree that the so-called ‘Non-tax’ income is the income from the Real Assets of the country.  So far, these valuable assets are being doled out by many Ministers for a pittance to Big Business.  As a true patriotic citizen of India, we request you to kindly bring a paradigm shift in your approach.  Please start the process of increasing the income from Real Assets of the country and correspondingly reducing the Taxes and the Borrowing.  Hence we request you as follows:

  1. Henceforward, please consider yourself as WEALTH MANAGER of the country.
  2. Please make a declaration, asap, that now onwards your focus shall be to increase the income from Real Assets of the country and reduce taxes and borrowing.
  3. That your next Budget speech shall begin by highlighting how much income has been generated from Real Assets of the country and what is your target for the ensuing year.
  4. That you accept the target of making India a ‘Tax and Debt free’ nation within next 10 – 12 years.

Sir, you shall be the real ‘Bharat Ratna’ and the country shall always remember you for this National service of the highest order in the interest of our future generations.

Respectful regards,

……..
Citizen of India

 

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