The next demonetization type idea? | Fusion - WeRIndia

Everyone knows of the higher currency demonetization move taken by the Narendra Modi government. The idea to do this move came from a man named Anil Bokil.

His meeting with Narendra Modi is what resulted in the historic move of demonetization. Now, this man has suggested a new idea for a new kind of taxation. This is called the Banking Transaction Tax (BTT).

This unique type of taxation would remove all sort of taxes except custom duty. Yes, that would include the Income Tax.

If you are wondering how the government would make money in this case, the taxes will be collected based on banking transactions of both credit and debit. Cheques and electronic transactions will also be counted.

In an interview, Bokil said that the government might do this bold move after the victory in the Uttar Pradesh state elections.

He says that such a method of taxing would improve transparency in transactions.

A similar model was once suggested to the BJP party back in 1999.

The main scheme of the model is that all taxes will be collected through transactions. Then they will be distributed to the state governments and the Central government.

This proposed idea is still at the phase of being just an idea. At this stage, it is still speculation as to whether it will happen or not.

However, Bokil is confident that this move would happen and the government would implement this in order to fight black money in the country strongly.

Banking transactions would have a 2 percent tax on banking transactions.

The country is now in a direction towards a cashless economy. This means that such a move can track most transactions that happen in the country. Whether this will happen or not, only time will tell.

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