The document proposes a new economic system called "Arthakranti" that involves withdrawing high denomination currency above Rs. 50 and replacing the existing taxation system with a single Bank Transaction Tax (BTT) of 2% deducted from all bank transactions. This would generate substantial tax revenue for the government while eliminating black money, increasing banking and stimulating the economy. Key effects of the proposal include boosting market demand, reducing commodity prices, generating adequate tax revenue, improving infrastructure and providing social security. The goal is to create an empowered, prosperous and peaceful India free from corruption and anti-social elements.
One of the key issues highlighted on our end-year KIB Consulting e-news edition is to help our clients in identifying and understanding today’s business landscape and its ongoing risks. The headline was excerpted from the World Economic Forum insight report of Regional Risks for Doing Business 2018.
Tax Rate Changes and its Impact on Tax Burden Leading to Tax Evasion Practice...inventionjournals
Tax evasion is the major destruction for any country’s economy. It plays a significant role in the developing country’s economy. Due to tax evasion practices the citizens of the country are getting poor infrastructure facilities. The ending results of tax evasion to the Government is revenue loss, which cause a serious damage and deficit of revenue which leads to lack of public expenditure. The study examines factors that influencing tax evasion practices in India. The survey was conducted with primary data from 110 respondents with five point rating scaled questionnaire. The outcomes of the study reveals that the low quality of service to the public in return for the tax significantly impact the tax evasion practices in India. Furthermore, high impact on tax evasion on variables such as tax system, transparency, fairness and accountability. High level of corruption is also one of the major factors for the tax evasion practices in India. The study recommends necessary steps to be taken in view of the transparency, accountability and corruption in order to gain the public morale and minimize the tax evasion practices in India.
The non-partisan Committee for a Responsible Federal Budget (CRFB) has compiled a brief background on the scope of our nation's fiscal challenges and the drivers of our debt and deficits, while outlining some of the types of solutions available to address the problems. This Powerpoint is meant to offer an objective, easily-accessible view of our country's fiscal situation as an educational tool meant to help foster open and honest discussion about these issues.
One of the key issues highlighted on our end-year KIB Consulting e-news edition is to help our clients in identifying and understanding today’s business landscape and its ongoing risks. The headline was excerpted from the World Economic Forum insight report of Regional Risks for Doing Business 2018.
Tax Rate Changes and its Impact on Tax Burden Leading to Tax Evasion Practice...inventionjournals
Tax evasion is the major destruction for any country’s economy. It plays a significant role in the developing country’s economy. Due to tax evasion practices the citizens of the country are getting poor infrastructure facilities. The ending results of tax evasion to the Government is revenue loss, which cause a serious damage and deficit of revenue which leads to lack of public expenditure. The study examines factors that influencing tax evasion practices in India. The survey was conducted with primary data from 110 respondents with five point rating scaled questionnaire. The outcomes of the study reveals that the low quality of service to the public in return for the tax significantly impact the tax evasion practices in India. Furthermore, high impact on tax evasion on variables such as tax system, transparency, fairness and accountability. High level of corruption is also one of the major factors for the tax evasion practices in India. The study recommends necessary steps to be taken in view of the transparency, accountability and corruption in order to gain the public morale and minimize the tax evasion practices in India.
The non-partisan Committee for a Responsible Federal Budget (CRFB) has compiled a brief background on the scope of our nation's fiscal challenges and the drivers of our debt and deficits, while outlining some of the types of solutions available to address the problems. This Powerpoint is meant to offer an objective, easily-accessible view of our country's fiscal situation as an educational tool meant to help foster open and honest discussion about these issues.
Paer presentation for rooftop solar solutionJanak Shah
How
is
this
Different
from
Wheeling
Solar
Power?
§ The
solar
plant
is
collocated
at
your
premises
and
therefore
it
is
in
your
control
§ There
is
no
government
policy
risk
associated
with
the
installa8on
throughout
the
life
of
the
installa8on
§ The
8me-‐to-‐installa8on
is
very
short
as
compared
to
wheeling
permissions,
etc.
§ Does
not
involved
any
wheeling
charges
or
cross-‐subsidy
charges
and
therefore
100%
benefit
can
be
availed,
quickly
§ Poten8al
to
get
30%
MNRE
subsidy
as
it
is
up
to
100KWp
commercial
installa8on
which
further
increases
the
returns
§ Wheeling,
etc.
requires
a
minimum
of
1MWp
installa8on
which
increases
the
risk
associated
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the
investment
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to
various
external
factors
Cleanest villeage in Asia 2005 - MawlynnongJanak Shah
"Mawlynnong" --- India’s ‘Green and Clean’ village! ‘Mawlynnong’ is a small village in the north-eastern Indian state of Meghalaya -- 90km from the state capital Shillong. The village is a picture perfect painting! Discover India magazine declared Mawlynnong as the "Cleanest Village in Asia" in 2003! “The streets are all dotted with dustbins made of bamboo. Every piece of litter and almost every leaf that has fallen from a tree is immediately discarded. Plastic is completely banned and all waste disposal is environmentally friendly. Rubbish is thrown into a pit dug in a forest near the village where it is left to turn into compost”. “The villagers here say that lessons in hygiene start in school so that children can be taught from an early age how to keep their surroundings clean and green”. The village with cent percent literacy is conscious and they are spreading the message of conservation and protection of the forest. Locals plant trees from May to June to ensure that the virgin forest is kept intact and also replenished.
5. Economic Reality Interest on External Debt Cost of running Government National Security Infrastructure, Agriculture, Needs of Common man Complex Taxation system Black money
6. Effects of Fiscal Deficit on Local Industry Fiscal Deficit Poor Infrastructure Policies Influenced by Foreign Interests Attract FDI Subsidies Curbed Uncompetitive Local Industry / Trade Unemployment Local Agriculture Rendered Uncompetitive Reduced Rural Purchasing Power Social Insecurities
7. Effects of Fiscal Deficit on Credit Cycle & Government Revenue Fiscal Deficit Deficit Budget Inflation Uncompetitive Local Industry / Trade Unemployment Hard Credit Policy NPAs Increase GDP Growth Slows Down Conservative Lending Inadequate Capital Supply to Economy Purchasing power reduced Low Demand / Recession Inadequate Tax Revenue to Govt. Social Insecurities
8. Effects of Internal Borrowings on Fiscal Deficit Fiscal Deficit Internal Borrowings Spent on Non-Developmental Activities Inadequate Tax Revenue to Govt. GDP Growth Slows Down
9. Effects of Fiscal Policy & External Borrowings on Credit Policy & Banking System Fiscal Deficit External Borrowings National Policies Influenced Threat to Local Banking System Expensive Capital Lending Rates Increase Bank Interest Rates Increase Tax Rebate + High Interest Rates on Savings
10. Effects of Fiscal Deficit on Disinvestment Policies & Reduced Social Spending Fiscal Deficit Pressure to Disinvestment Threat to Organized Employment Social Insecurities Purchasing Power Reduced Govt. Control Lost in Essential Commodities [e.g. Oil, Medicines etc.] Severe Impact on Weaker Sections Scope for Market Exploitation Cost Burden Passed onto Common Man Public - Private Partnership e.g. Toll Reduced Social Spending
11. Effects of Fiscal Deficit on Anti-Social Industries Fiscal Deficit Increased Congestion, Accidents, Pollution Social Insecurities Inadvertent Promotion of Anti-Social Industries Promotion of State Run Lottery Schemes Increase in oil Import Losses (Subsidies) Promoting Increased use of Oil Automobiles Lack of infrastructure / public amenities (e.g. public transport system) Promotion of Liquor, Gutkha, Cigarettes Direct Ill Effects on Public Health
12. Effects on Taxation System & High Denomination Currency Fiscal Deficit Inadequate Tax Revenue to Govt. Tinkering of Taxation System Uncompetitive Local Industry / Trade Expensive Capital Flawed Taxation System Inflation Black Money Parallel Economy Poor Governance Social Insecurities Corruption Non Traceable Transactions Ease of Cash Transactions Large Denomination Notes Less Use of Banking System GDP Growth Slows Down Inadequate Capital Supply to Economy Poor Credit / Capital Formation High Input Costs Tax Evasion Fiscal Deficit
13. Effects of Fiscal Deficit on Credit Cycle & Farmers’ Suicides Fiscal Deficit Deficit Budget Inflation Hard Credit Policy Social Unrest Less Use of Banking System Poor Credit / Capital Formation Individual’s Credibility NOT Established Low Credit Supply to Agriculture Unjust Borrowings from Private Sources Farmers’ Suicides
14. Flawed Taxation System Narrow Base and Limited Coverage of Direct Taxation Direct to Indirect Tax Ratio is 40:60 Inequitable and hence Regressive Non-Productive Uncertain Inelastic Uneconomical Complex nature of taxes Tax laws open for interpretation Show Show Show Show Show Show Show Show Statistics How should it be… Show
15. Currency Denomination Country Per Capita Income Highest Denomination Per Capita Income / Highest Denomination USA UK Japan India $40,000 20,000 £ 40,00,000 ¥ Rs. 46,000 $100 50 £ 10,000 ¥ Rs. 1,000 400 400 400 46 Currency Denomination Distribution
16. Credit Establishment Less Use of Banking System Obstructs Credit Registration of a lot of Citizens in the National Economy
17. Withdrawal of High Denomination Currency (say above Rs. 50) Arthakranti Proposal Withdrawal of Existing Taxation System Completely (except Customs and Import Duties) Every Transaction routed through a bank will attract a certain deduction in appropriate percentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %) This deduction is to be effected on receiving/credit account only This deducted amount will be credited to different Government Levels like Central, State and Local (say 0.7%, 0.6% and 0.35% respectively) Transacting Bank will also have its share in this deducted amount as the bank has a key role to perform (say 0.35%) Cash Transactions will not attract any tax Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000)
18. Effects of Arthakranti Proposal Bank Transaction Tax (Say 2%) High Denomination Currency is Removed (Say above Rs. 50) Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000) Existing Cash Deposited in Banks & Attracts BTT High Value Cash Transactions Not Practical Increase in Banking Transactions Tax Revenue Increases by Orders of Magnitude Adequate Revenue to Govt. Adequate Revenue to Government Show
19. Effects of Arthakranti Proposal Tax Collection is Simplified Opportunities for Corruption Eliminated Black Money Eliminated Anti-Social and Anti-National Elements Effectively Checked Fake Currency Eliminated Anti-Social and Anti-National Elements Effectively Checked Adequate Revenue to Government Bank Transaction Tax (Say 2%) High Denomination Currency is Removed (Say above Rs. 50) Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000) Existing Cash Deposited in Banks & Attracts BTT
20. Effects of Arthakranti Proposal Increase in Banking Transactions Part of BTT goes to Banks Net Banking Revenue Increases Globally Competitive Interest Rates Cheap and Easy Capital Purchasing Power of Society Increased Market Demand Boosted Industry Trade, Supply Stimulated Anti-Social and Anti-National Elements Effectively Checked Adequate Revenue to Government Industry Trade, Supply Stimulated Bank Transaction Tax (Say 2%) High Denomination Currency is Removed (Say above Rs. 50) Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000) Existing Cash Deposited in Banks & Attracts BTT
21. Effects of Arthakranti Proposal Commodities and Services are FREED from Tax Influence Prices Drop Focus Shifted to Innovation from Tax Manipulation Industry Trade, Supply Stimulated Cheap and Easy Capital Purchasing Power of Society Increases Market Demand Boosted Anti-social and anti-national elements effectively checked Anti-Social and Anti-National Elements Effectively Checked Adequate Revenue to Government Industry Trade, Supply Stimulated Show Bank Transaction Tax (Say 2%) High Denomination Currency is Removed (Say above Rs. 50) Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000) Existing Cash Deposited in Banks & Attracts BTT
22. Effects of Arthakranti Proposal Black Money is Converted into White Tax Revenue Increases by Orders of Magnitude SLR Revised Money Supply Regulated Industry Trade, Supply Stimulated Adequate Revenue to Govt. Anti-Social and Anti-National Elements Effectively Checked Adequate Revenue to Government Industry Trade, Supply Stimulated Bank Transaction Tax (Say 2%) High Denomination Currency is Removed (Say above Rs. 50) Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000) Existing Cash Deposited in Banks & Attracts BTT
23. Effects of Arthakranti Proposal Adequate Revenue to Govt. Industry Trade, Supply Stimulated Anti-Social and Anti-National Elements Effectively Checked Fiscal Deficit Recovered Govt. Debts Checked Empowered Government Appropriate subsidies Globally Competent Agro-Segment Social Security Restored Employment Opportunities Budgetary Provision for Political System Cleansed Political System Black Money Eliminated Effective Governance Bank Transaction Tax (Say 2%) High Denomination Currency is Removed (Say above Rs. 50) Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000) Existing Cash Deposited in Banks & Attracts BTT
24. Revenue for Banking Cheap and Easy Credit Availability Decentralized Revenue Collection System Elimination of Black Money Social Security Scheme Tax Burden Reduced with BTT Budgetary Provision for Political System Elimination of Means & Motives for Corruption Adequate Revenue to run Govt. Programs EMPOWERED INDIA Creativity FREED from Tax Manipulation Building Individual’s Credibility Industry, Trade, Supply Stimulated Anti-Social and Anti-National Elements Effectively Checked Increased Purchasing Power Bank Transaction Tax (Say 2%) High Denomination Currency is Removed (Say above Rs. 50) Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000) Existing Cash Deposited in Banks & Attracts BTT
33. Back Currency Denomination Distribution 2010-2011 Highest Three Denominations account for 94 % of the Total Currency Money while 78% of our Population earns Rs. 20 or less a day.
34. Banks Primary Deposits Cash Reserves Loans / Derivate Deposits Credit Expansion through Banking System A 2000 1 200 1800 2 B 1800 180 1620 C 1620 162 1458 D 1458 145 1313 E 1313 131 1182 Eventually 20,000 2000 18,000 3 1 - Original Primary Deposit 2 - Original Excess Reserves 3 - Total Capital Formation through Credit Expansion with Original Primary Deposit of Rs. 2000
35. Product MFG Cost Taxes Analysis of Commodity Prices Cement 80 ~ 160 Motorbike 21,000 21,000 Petrol 24.0 / lit 26 / lit Back All figures in rupees Sales Price ~ 240 42,000 50 / lit Chinese Cost 72 25,000 - Diesel 26 / lit 14 / lit 40 / lit -
36. Sample Calculations Narrow Money ( M1 ) = Currency with public + Demand deposits For year 2010-2011 Currency with public = 9,50,000 Demand deposits = 7,18,000 Narrow Money (M1) = 16,68,000 Assuming 20% of M1 (Transaction Money) in daily transaction, Amount of money in daily transaction (D1) = 3,33,600 Amount of money in daily transaction (Y1) = D1*365 = 2,20,000*365 = 12,17,64,000 Considering 2% (notional) Transaction Tax in which share of Centre Government 0.7% , State Government 0.6% , Local Corporation 0.35% . Revenue for Centre ( 0.7% ) and States ( 0.6% ) Combined = Y1 * 1.3/100 = 12,17,64,000 *0.13 = 15,83,900 Revenue for States (0.6%) =~ 7,31,800 Revenue for Local (0.35%) =~ 4,27,000 Revenue for banks (0.35%) =~ 4,27,000 All figures in Rs. Crores
37. Sample Calculations Assuming 20% of M1 (Transaction Money) in daily transaction, Amount of money in daily transaction (D1) = 3,33,600 Amount of money in daily transaction (Y1) = 12,17,64,000 Suppose we change the share% - Central Government 1.0%, Revenue for Central Govt. (1.0%) = 12,17,640 State Government 0.6%, Revenue for States (0.6%) = 7,30,584 Local Corporation 0.3%, Revenue for Local Corp. (0.3%) = 3,65,292 Banks 0.1%, Revenue for Banks (0.1%) = 1,21,764 2005-2006, per capita net national product Rs. 20,734 State Per capita net state product (Rs.) Delhi 53,976 Bihar 5,772 Maharashtra 32,170 Central Govt. will use this revenue to reduce disparity All figures in Rs. Crores
38. State Per capita net state product (Rs.) Greater Mumbai 65,625 Pune 54,539 Nagpur 42,016 State Govt. will use this revenue to reduce disparity Sample Calculations Nashik 29,680 Nandurbar 15,766 Per capita net domestic product of Maharashtra Rs. 32,170
39. Country Transaction Money Money Supply Currency (A) Ratio B ÷ A Demand Deposit (B) Total (A + B) 47.7 Bi Au $ 220 Bi Au $ 267.7 Bi Au $ Australia 4.61 4.73 Tr Yu 21.18 M Yu 25.91 M Yu China 4.48 75.6 Tr Yen 445.8 Tr Yen 521.4 Tr Yen Japan 5.89 35 Tr Won 101 Tr Won 136 Tr Won South Korea 2.88 4.3 Bi Nz $ 27.24 M Nz $ 31.54 M Nz $ New Zealand 6.33 4900 Bi Ru 14900 Bi Ru 19800 Bi Ru Russia 3.04 23 Bi Sing $ 94 Bi Sing $ 117 Bi Sing $ Singapore 4.09 53.5 Bi £ 1029.5 Bi £ 1083 Bi £ UK 19.24 951 Bi $ 961 Bi $ 1912 Bi $ USA 1.01 9500 Bi Rs. 7180 Bi Rs. 16680 Bi Rs. India 0.76
47. Back Revenue of Centre & State Governments (Combined) 2010-2011 Budget Probable Tax Collection Under T.T. System [0.7% Share Of the Centre + 0.6% Share of the States] Total Revenue 11,61,240 15,83,000 + Import Duties 31,66,000 + Import Duties At 20% Transaction Ratio At 40% Transaction Ratio Currency Money Demand Deposits 9,50,000 7,18,000 Total Narrow Money (M1 = Currency Money + Demand Deposits) Rs.16,68,000 Crores – with a moderate assumption of 20 to 40% of this amount to be active in daily transactions. All figures in Rs. Crores
48. Back Revenue of Mumbai Municipal Corporation As per existing Tax system Ref: Corporation Budget 2007-2008 Probable Tax Collection Under T.T. System (@ 0.35% Share of Local Body) 8,550 0.0035*35,85,000 = 13,000 Cheques worth Rs.~36,85,000 Crores cleared in Mumbai in the year 2007-2008. All figures in Rs. Crores
49. Arthakranti Pratishthan Advertising Campaign Public Presentation Media Tools The Indian Citizen Business Leaders Political Leaders & Parties Experts Members of Parliament The Arthakranti Doctrine The Citizens Charter of Demand The Arthakranti National Reform Bill Implementation Show Show Show Media Show
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53. Eradication of Black Money Appropriate remuneration for elected representatives at all levels Legal provision of funds for politics at all levels Provision of funding for political parties based on population Effective funding available for political parties depends upon voting percentage Funding to political parties based on the percentage of votes won Decreased dependence on corruption and criminals Assured clean funding Transparency in politics Dignity & public trust restored Politics professionalized as the qualified people will take it up Decreases ill-influence of local parties in national politics Political parties interested in increasing voting Politics focused on real issues and national interests Increased stability of government Improved functioning and decision making Increased law and order Improved governance Empowering democracy
57. SSA beneficiaries will not have right on income from hereditary property Bank account for SSA (associated with SS Code) SSA can’t be used as security for any other loan Unique SS code for every citizen Maximum Credit Limit For SSA beneficiaries up to say, Rs. 50,000 Withdrawal of Non-merit subsidies (Central and State) Social Security Allowance (Say Rs.1500 monthly) (linked to DA) (Food, clothing, shelter, health insurance) Saved Gov. Revenue Expenditure Effective implementation of child welfare laws & schemes Increase in Purchasing power of the poor people Increased use of Banking system Credit available to the poor Credit / Capital expansion in the banking system as a whole Opportunities of Corruption are reduced (PDS, fuel etc.) Price distortion removed Assured dignified existence for every citizen Hugely increased demand for goods and services (Necessities) Establishment of Individual credibility with bank Increased Business / Employment opportunities locally Farmers’ suicide checked Decreased Social Unrest (reduced Naxalism, terrorism, extremism, etc.) Balanced Development (Rural and Urban) Dissemination of Population Social security Market driven quality supply of goods & services Improved quality of life
84. Poverty Reduced Social Spending Unemployment Reduced Purchasing Power Flawed Taxation System Tax Evasion Under-utilized Banking System Inadequate Money Supply to Economy Individual’s Credibility not Established High Commodity Prices due to Heavy Indirect Taxes Deprivation – from Resources and Means (Credit) to Acquire Them No Access to Credit Lack of Education & Skills Terrorism Analysis
85. Loss of faith in peaceful, democratic process, no hopes of getting ‘justice’ without resorting to violence Deprivation, Extreme Disparity, Envy Poverty Social Oppression (Communal / Religious / Caste / Linguistic etc.) Sense of Hurt, Damage to Self Esteem, Indignation Desperation Rebellious Tendency Terrorism Analysis
86. Loss of faith in peaceful, democratic process, no hopes of getting ‘justice’ without resorting to violence Religious Dogma Terrorism Perceived Historical injustice Political / Economic / Philosophical ideology Propaganda for masses, Indoctrination of individuals Birth of a militant Public sympathy, Weak national Character Lack of clear and firm Foreign (therefore, Defense) policy Physical constraints (Porous borders, unregulated coastlines) Parallel economy, Corruption, Fake / high denomination currency Logistic support, funding and training etc from hostile foreign organizations / nations Systemic Administrative weaknesses in governance and law enforcement
87. Withdrawal of High denomination currency (above Rs. 50) Arthakranti Proposal Withdrawal of existing Taxation System completely (except Customs and Import duties) Every Transaction routed through a bank will attract certain deduction in appropriate percentage as Transaction Tax i.e. Single point tax deducted at source (say 2 %). This deduction is to be effected on receiving/credit accounts only This deducted amount will be credited to different Government levels like Central, State and Local (say 0.7%, 0.6%, 0.35% respectively) Transacting Bank will also have its share in this amount as the bank has a key role to perform (say 0.35%) Cash transactions will not attract any transaction tax Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000)
88. Poverty Reduced social spending Unemployment Reduced purchasing power Flawed taxation system Tax evasion Under-utilized banking system Inadequate money supply to economy Individual’s credibility not established High commodity prices due to heavy indirect taxes Deprivation – from resources and means (credit) to acquire them No access to credit Lack of education & skills Effects of Proposal Adequate revenue with Government
89. Poverty Unemployment Reduced purchasing power Flawed taxation system Tax evasion Under-utilized banking system Inadequate money supply to economy Individual’s credibility not established High commodity prices due to heavy indirect taxes Deprivation – from resources and means (credit) to acquire them No access to credit Effects of Proposal No Black Money Single point taxation system
90. Poverty Unemployment Reduced purchasing power Under-utilized banking system Inadequate money supply to economy Individual’s credibility not established Deprivation – from resources and means (credit) to acquire them No access to credit Effects of Proposal Banking transactions increased Individuals credibility established
91. Poverty Unemployment Reduced purchasing power Deprivation – from resources and means (credit) to acquire them Effects of Proposal Industry, trade, supply stimulated Purchasing power increased Cheap & easy capital Single point taxation system Individuals credibility established
92. Effects of proposal Terrorism Birth of a militant Public sympathy, Weak national Character Lack of clear and firm Foreign (therefore, Defense) policy Physical constraints (Porous borders, unregulated coastlines) Parallel economy, Corruption, Fake / high denomination currency Logistic support, funding and training etc from hostile foreign organizations / nations Systemic Administrative weaknesses in governance and law enforcement Adequate revenue with Government Individuals credibility established Single point taxation system No Black Money Purchasing power increased Poverty Industry, trade, supply stimulated
93. Effects of Proposal Terrorism Birth of a militant Public sympathy, Weak national Character Lack of clear and firm Foreign (therefore, Defense) policy Physical constraints (Porous borders, unregulated coastlines) Parallel economy, Corruption, Fake / high denomination currency Logistic support, funding and training etc from hostile foreign organizations / nations Systemic Administrative weaknesses in governance and law enforcement Adequate revenue with Government Individuals credibility established Single point taxation system No Black Money Purchasing power increased Social security Industry, trade, supply stimulated Empowered Government