Scraps Stuffs - Random musings from apun ka desh

The worst thing about Chidambaram's budget proposals is the tax on cash withdrawals over Rs. 10000. Chootia even has the gall to say that its not a revenue raising measure but a scheme to track tax evasion. The things wrong with this proposal are:

1. Its effectively double taxation. Its my income on which I have already paid tax. So why pay even a single naiya paisa more tax on it?

2. Chidambaram cannot guarantee that everyone will except cheques/credit cards with no exceptions. In an emergency can he guarantee that all hospitals will accept cheques. Credit cards is not the answer because everyone may not have one.

3. It's not very effective as a means of tracing black money, because most black money would not be in banks in the first place. It would be in gold/jewellery or benami real estate or even the proverbial stacks of currency under the mattress.

Chidambaram needs to be a man and say it for what it is - an ill thought out measure which is ill suited to what its supposed to do. Or if he really intended it to be a revenue raising measure, he needs to say so