Today the biggest problem our country is facing is of black money. It is the biggest reasons for economic inconsistency in our country which results in inequality socially. The factors that promote to the generation of black money are very large in number. Few of them are high tax rates, cost of living is increased, the difference in rates of excise duty.
Control Measures to reduce Black money issues
It is extremely necessary to tackle the issue of black money since it is obstructing the country from growing and developing. Here are a few ways to control black money issues:
- Realistic tax systems. If tax rates are too high then people try to evade taxes. People must not consider paying taxes as a burden.
- Tax collection processes must be more systematic and efficient. The government must consider it as a duty to award those officials who take this task seriously. This will motivate other officials as well and collection process will go smooth.
- The policy of price control needs to be modified by the government. The inefficient price control methods lead to a collection of black money.
- The expenditure of the projects in the public and private sector needs to be monitored closely and attempts must be made to bring them down.
- Strict actions must be taken against employees who promote corruption. Allowing them freedom increases the collection of black money.
- The property buying and selling business must be evaluated thoroughly since dealers use the opportunity to hide lots of money.
- The higher part of society such as celebrities, politicians, and businessman must pay their taxes on time and set examples for the common masses.
- Waivers should be given to those who take paying of taxes seriously.
- The comparative rates must reflect efficient exchange rates in the economy of the world.
The government setup up by Modi took the decision of demonetization to tackle the issue of black money but still, a lot more efforts are required to reduce this problem in India. People must understand their duties toward the company and should ensure that their taxes are paid properly and on time. People must take it as a responsibility to neither promote the collection of money in their own houses but also restrain others from doing so. If each citizen of the country provides his small contribution to pay taxes it will definitely increase Indian economy.