The government secured passage of the Black Money Bill in Parliament last week to show that it is serious about fulfilling its promises of toughness on the parallel economy and cover its flanks against allegations of inaction by Opposition. The Black Money Bill which seeks to unearthed unaccounted funds and assets stacked by Indians abroad and provide for 12 per cent tax penalty in addition to 10 year jail term will be a positive step to curb the menace after getting assent of the President. The Bill was crafted in the backdrop of political ground especially by BJP in the run up to the last general elections. No doubt the Bill is aimed at ‘big fish’ but surely would help unearth large unaccounted money and assets though having some loose ends in the legislations. Even the Benami transactions would be under scrutiny. The Govt has been constantly under Opposition onslaught for inaction on this front and routinely taunted Modi’s claim of Rs 15 lakh in every citizen’s account if the black money stacked abroad was brought back made, during the last Lok Sabha elections. Was it not a ploy to open more bank accounts and more people-inclusion in banking? India has often suffered economic consequence on account of government legislating to actualise rhetoric, something UPA-II learned it hardway. The Black Money Bill is a bit loose, the bane of many legislation which failed to see the logical ends. The other side could be the incentives the black money gives to tax officials. Would there be a chance of misuse the law to meet the tax collection targets? The focus should be on strengthening administrative capabilities to take advantage of the situation. The Benami Transactions Bill on the other hand is aiming to dodge tax evasion is another initiative to fight the menace of black money inside the country. So the Bill after getting President’s assent would be a double edged weapon to counter the growth of parallel economy. It could be an endevour in the right direction if implemented correctly.
