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Exit-polls in Delhi call Prime Minister to overhaul economic policy

Strong wave in favour of Aam Admi Party (AAP) as unanimously predicted by all exit-polls conducted by various agencies and TV news-channels despite full force induced in poll-fray by BJP national leadership tends to prove that voters are not less concerned because of problems being faced in day-to-day life even despite people having nationalist approach.

Central government should drastically overhaul its fiscal policies to generate more employment and restore trade activities by simplifying GST structure and realistic economic policies giving regular surplus flow of funds to exchequer and bringing regularly generated unaccounted money in national economy. This can be done by having dual rate GST system with 10 and 30 percent slabs apart from additional slabs in multiples of 100 for super-luxury non-essential items abolishing cess and restricting Input-Tax-Credit (ITC) only for trade-activities with more raw items in zero-tax slab to abolish ITC from manufacturing sector.

Income Tax structure have basic exemption-limit of rupees five lakh, 10-percent for next five lakh, 20-percent for next fve lakh and then 30-percent for rest of income. All tax-exemptions, cess and surcharge then can be altogether abolished. Permanent Voluntary Disclosure Scheme should be induced by charging maximum tax-slab of suggested 30-percent on undisclosed with 20-percent compulsory investment in new-to-be-introduced long-term low-interest infrastructural bonds. Capital gain should be reduced to 10-percent. All such steps will boost investment in property much needed to revive economy.

Investment in infrastructural bonds can be utilized to set up public-sector units rather than disinvesting. For instance, production units of bakery products in each district of the country can be set up to provide mid-day meal in schools and rail-catering apart from entering markets on lines of Mother dairy. At the same time, merger of public-sector units engaged in same sector like oil-companies should be done to save on unnecessary overheads.

 

SUBHASH CHANDRA AGRAWAL

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