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Decision needed soon on govt-appointed committee for elephant-bonds for drastic reduction in currency circulation

Kashmir Times. Dated: 11/7/2019 12:03:59 AM

Dear Editor,
According to media-reports, a high-level government-committee led by economist Surjit Bhalla has recommended an amnesty scheme in form of elephant-bonds wherein those declaring undisclosed money or assets could pay 15-percent tax after investing 40-percent of undisclosed amount in 20-year elephant-bonds yielding nominal 5-percent annual interest. Central government should take decision on the proposal soon because currency-circulation after demonetisation of old currency on 08.11.2016 has increased by about 20-percent instead of anticipated reduction. Only paving way for cashless economy can increase revenue-earning, check tax-evasion and corruption both. Rather thought should be given to have permanent amnesty scheme in form of elephant bonds by modifying modalities for 30-percent tax and 50-percent investment in elephant-bonds for ten years with interest-yield of 5-percent per annum as a permanent way to check currency-circulation, revenue-earning and investment in infrastructure in turn creating employment also.
Simultaneously instead of any demonetisation, those having rupees-2000 currency notes may be asked to deposit these in bank-accounts and withdraw if needed immediately or as per need thus not affecting common people or having accounted cash in form of 2000-rupee notes. It will automatically make those having unaccounted cash in form of rupees-2000 notes to avail amnesty scheme in form of elephant-bonds.
—Subhash Chandra Agrawal,
1775 Kucha Lattushah
Dariba, Chandni Chowk Delhi.