Banking Transaction Tax to replace Income Tax

New Delhi, November 08: Demonetisation was a big and bold decision by the government, but to eliminate black money the government needs to abolish the current taxation system, says Anil Bokil the man who gave an idea of note-ban to Prime Minister Narendra Modi before it was implemented.

According to a report, Anil Bokil is the founder of Arthakranti – the organization that made a five-point presentation on demonetization to PM Modi.

The PM, FM, RBI governor, and financial advisor had decided six months back that serious measures should be taken in this regard. Two months back the decision was made. Prior to that Bokil had met with the Prime Minister and given 9 minutes to make his case.



In the nine-minute presentation, here is what he said: Ban notes of Rs 500, 1,000 and even 100 All transactions must take place through banks with the help of cheques, demand draft and online Single baking system for revenue collection. Except for import duty, stop the collection of money under 56 different taxes.

Bokil also justified his suggestions by saying that the country's 78 percent population spends only Rs 20 a day. Hence they do not require big currency notes.

Bokil said that in India an average transaction of Rs 2.7 lakh crore is seen daily which accounts a to Rs 800 lakh crore per year. However, only 20 percent transactions out of this take place through banks.

The rest all takes place through cash which cannot be traced. Wih Bokil's presentation, PM Modi was impressed and the ban was set in motion, a news report said. However, sources said that PM may take this decision in next year.