Friday, 28 February 2014

A NARCO Test ?

To bring out " truth " from a suspected criminal , police deliver a NARCO test , by administering , what is popularly known as TRUTH SERUM

It reveals a person's innermost thoughts and feelings

Occasionally , his feelings about others . Feelings that have so far , remained suppressed in his subconscious

Of late , we have heard our politicians refer to their political opponents , as :

>   Maut Ka Saudagar

>   Khooni Panja

>   Shehzada

>   Chor ( Thief  )

>   Criminal

>   Mendhak  (  Frog  )

>   Bandar  (  Monkey  )

>   Napunsak  (  Impotent  )...........etc


Those that failed to receive the full prescribed doze of the Truth Serum , just call their opponents :

>   Corrupt

>   Indecisive

>  Incompetent

>  Insecure

>  Spineless

>  Confused..................etc

I wonder whether , once in five years , our good doctor EC ( Election Commissioner ) , administers a NARCO test to our politicians , by announcing elections  !

What I never knew is that this NARCO test also brings to the surface , all those wonderful / sympathetic   feelings that our political bosses harbored for us - the poor public - always , but were too busy to express all along  ! 

Here is how they describe us - the poor people of Mother India  :

>  Suppressed

>  Oppressed

>  Tortured

>  Maligned

>  Neglected

>  Miserable

>  Starving

>  Suffocated

>  Deprived ..............etc


Such  a glorious show of empathy  !


I almost wish , we had National Elections , every alternate year  !


*  hemen  parekh  (  01 March  2014  /  Mumbai  )

  

Wednesday, 26 February 2014

Create Wealth to Create Jobs



Our current Personal Income Tax slabs are :


>   Up to Rs 2.0 Lakhs.......................  NIL

>   2.1 Lakh  -  5.0 Lakh....................   10 %

>   5.1 Lakh   - 10.0 Lakh...................   20 %

>   More than Rs 10 lakh....................    30 %


That means , the more you earn , the more tax you pay  !


How does this wrong tax regime hurt our economy  ?


This regime ,


>   Punishes honest people


>   Penalizes wealth creation


>   Encourages creation of " Black Money "


>   Provides incentive for tax evasion


>   Diverts resources into unproductive assts such as cash/gold/land etc


>   Stops people from working harder / smarter


With this regime , people tend to ask :


>   Why should I work hard and earn more , if the more I earn the more I
      pay  ?


>   Why not evade paying taxes by hiding real income ?


>   How will I ever be able to buy that 1 room flat costing Rs 50 lakhs ? I
     need Rs 20 lakhs by way of black money to buy it ! Where do I get that ?


>   For every rupee that the government collects from me as tax , only 15
     paise come back to me in the form of civic amenities .


A few years back , the tax regime was worse  !


One ended up paying , by way of tax , Rs 0.93 from every rupee earned  !


And after heaping on the honest tax-payers , all such disincentives , how much does our government collect by way of taxes  ?


>  Total Tax Receipts ...................................... Rs  12.4  Lakh Crores


>  Personal Income Tax contributes....................Rs   2.47 Lakh Crores


Is there a way to raise that Rs 2.47 lakh Crores to Rs 247 Lakh Crores  ?


Can we raise it by 100 FOLD  ?


I am not an Economist ( my advantage ! )


So , here is my crazy suggestion


" Inverse " the tax slabs as follows :


>  Up to  Rs 2 lakhs..................... NIL

>  2.1 - 5.0 lakhs......................  10 %

>  5.1  - 10 lakhs.......................  8 %

>  10.1 - 20 lakhs......................  6 %

>  20.1  - 50 lakhs.....................  5 %

>  50.1 - 100 lakhs.....................  3 %

>  Above 100 lakhs......................  1 %



What is likely to happen with such " INVERSE  TAXATION  " regime  ?


Following few things :


>  Total personal tax payer base will go up dramatically from current 4
     crores tax-payers


>   Total personal tax collection too , will rise dramatically


>   Today , only 1 % of 4 crores tax payers ( approx 4 lakhs ) , contribute
     nearly 63 % of personal tax revenue ( of Rs 2.47 lakh crores )

     This ratio will change  to , may be , 20 % of tax payers  !


>  with this " INVERSE  TAX  REGIME " , there will be no incentive to  evade
    taxes and to generate " BLACK  MONEY  "

    There will be no resistance to accept ALL payments by cheque / electronic clearance  !

    The more you disclose as your income , the less you pay by way of taxes


>  For a change , we will learn to reward honesty / efficiency / productivity !
    No need to bribe those Income Tax officers  !


>  Suddenly , lakhs of crores of BLACK MONEY , stashed away in bank
     lockers / gold / land - and , of course those Swiss bank accounts  - will ,
     suddenly become " WHITE  MONEY "  !


>  There will be a huge surge in bank deposits ( - even with , the inevitable
    lower interest rates )


>  Banks will be awash with funds to finance businesses / infrastructure
    projects etc , encouraging entrepreneurs / self-employed to set up new
   businesses ( at 2 % interest rates of loans ) and generate millions of jobs

>  There will be a phenomenal rise in Capital Markets



Now couple this " INVERSE TAX REGIME " , with the following " TAX FREE " investment schemes , by creating Special Purpose Vehicles ( SPV ) :


>  NaMo  MEGA-CITY  SPV


    To implement Narendra Modi's ambitious project to build 100 smart cities,
    at an investment of Rs 70 lakh crores , in next 5 years

    This project alone will create 5 million new jobs , every year



>  RaGa  MEGA - JOBS  SPV


    To implement Rahul Gandhi's equally ambitious project to provide jobs to
    50 million youth over the next 5 years , at an investment of Rs 50 lakh
    crores



In my opinion , such " INVERSE TAX REGIME " , coupled with the above mentioned SPVs , will herald  an "  ECONOMIC  ECO - SYSTEM ", which,


>  will create jobs


>  shun tax evasion


>  reduce corruption


>  convert all BLACK MONEY  into WHITE MONEY


>  channelize these  WHITE MONEY  into nation-building projects


To complete this ECO SYSTEM , we  need to think " Out of the Box " in the matter of Corporate Tax Regime , as well


Current trend in industry , all over the world , is to


>  Add highly productive , very expensive machinery to " Automate " all
    manufacturing processes


>  Reduce manpower by increasing " Capital / IT Intensity "


>  Hire low skilled workers by transferring higher " Skills " to machinery


>  Outsource manufacturing to countries where manpower is cheap


>  Move out of " Manufacturing " and shift to " Services "


India cannot swim against this World-wide Trend


We must innovate,  to not only survive but to grow in this scenario


Here is my suggestion :


Set in motion , " INVERSION  of JOB  REDUCTION " regime , under which ,


"  The more jobs a company creates , the less Corporate Tax it pays "


Example :


> Up to employment of 100 persons  ............................... 30 %

> 101  -  500 persons....................................................  25  %

>  501 - 1000 persons ...................................................  20  %

>  1001 - 5000 persons ..................................................  15  %

>  5001 - 10,000 persons ................................................. 10  %

>  Above 10,000 persons .................................................    5  %


Let us celebrate those who provide employment to large number of persons


Let us celebrate BIGNESS


Let us create hundreds of  WORLD SIZE corporations and take on the World


On top of this , provide additional tax - breaks ( discounts ? ) to corporate as follows :


> Average Age of Employees at 30 years.......................  1 %

> Ave age at 25 years.................................................  2 %

> Ave age at 20 years .................................................  3 %



Of course , very strict and transparent rules will need to be framed to

compute,


>  Number of Employees  ( Permanent - not probationers / trainees )


> Average Age ( as on 31 March of Tax year )......etc




But , here is an important aspect of this ,


" Incentivize  Job  Creation  "  Scheme


Today's labour laws make it extremely difficult - if not impossible - for employers to layoff / retrench workmen , if demand shrinks


Hence , to take advantage of this Scheme , employers are unlikely to hire thousands of youth , if they cannot easily trim the workforce , to match the shrinking demand


So , an important corollary of this Scheme is to modify our existing Labour Laws to facilitate layoff / retrenchment , when situation so demands , while protecting the interests of the workmen concerned



And , last but not the least , permit each and every candidate - and the political parties as well - to spend ANY AMOUNT on election campaigns ,
without any restrictions as also accept any amount of Corporate Donations
by cheque




I rest my case  !



*  hemen  parekh  (  27  Feb  2014  / Mumbai  )   

    

Sunday, 23 February 2014

Poll Promises ? Tall Promises ?



Yesterday , following Supreme Court directives , the Election Commission , revised , " Model Code of Conduct " , containing guidelines on what kind of poll promises , political parties can incorporate in their poll manifestos



GUIDELINES



>   Parties shall make only those promises which are possible to be fulfilled


>   It is expected that manifestos also reflect the rationale for the promises
     and broadly indicate the ways and means to meet the financial
    requirements for it


>   Party in power shall stop advertizing for publicity of achievements



REACTIONS



>   BJP             ( Mukhtar Abbas Naqvi )


    "  BJP never makes unrealistic promises. We will assure the EC that our
    promises can be realized "



>  CONGRESS   ( a leader said , anonymously )


    " The Congress Manifesto would reflect the real issues and not make
     empty promises  "



Although , neither BJP , nor Congress , have released their poll manifestos so far , their leaders have openly " promised " , the following in election rallies :


BJP



>  In 5 years , we will construct 100 smart Mega-Cities
    ( works out to a brand new mega-city , every 18 days  ! )

    Now each mega city would cost about Rs 70,000  Crores ( current
    estimate for Dholera - Gujarat )

    That means , to build 100 mega-cities , BJP government ( if elected ),
    must find,



    Rs  7,000,000  Crores  ( only  !  )



    I suppose, they will succeed in convincing the EC , that ALL the black
    money that they will bring back from those Swiss bank accounts , will
    take care of the financing issue !


    But there is a real danger that the EC may turn around and ask :


    " Modi Saheb ,


    To people of Gujarat you promised ( in your Manifesto dt 6 Dec 2012 ),
    that , if voted to power , you will construct 5 Million houses for the poor,
   in 5 years


   That works out to 2,740 new houses EVERYDAY for 1825 days


   420 days have elapsed since you assumed power in Gujarat


   Where are those  11,50,685  houses , which are supposed to be ready ? "



 
CONGRESS



>  We will create 100 million new " skilled " jobs for youth in next 10 years
    That is 50 million ( 500 lakhs ) jobs in next 5 years (  if voted to power  -
    hence not to worry  !  )


    Now , even  a small time industry ( SME ) , needs Rs 10 lakhs worth of
    investment ( fixed + working capital ) , to hire ONE person


   So , creation of 500 lakh ( 50 million ) jobs ( in 5 years ) would require,
   Rs 50 Million Million


   ie : 5,000,000  Crores  !


  Election Commission :


  Rahulji , From where will you find this money  ?

       

  Rahulji :


  No need to depend upon those Swiss bankers to return that black money !


Our industrialist fund donors and scam-involved Netas / Officers , have enough    money stashed away locally , in bank lockers , gold , land etc



AAP



And , not to be outdone , even AAP succumbed to such " Selling of Dreams " , by promising the people of Delhi , that , if voted to power , it will construct 500 new schools in 5 years !


That is ONE new school every 4th day  ! - 12 schools in those 48 days  ?


And my estimate is , those 500 schools each, will need Rs 10 crores to build -


ie:  Rs 5,000 crores


And each of those schools will need Rs 1 Crore per year by way of staff salaries and maintenance - an annual burden of Rs 500 Crores  !


Normally cynical about poll promises , I feel , this time around , people of India will , carefully read the manifestos


Some may even complain to the EC , if they find " Tall Promises "  !


*  hemen  parekh  (  24  Feb  2014  /  Mumbai  )

  

  

  



     

Saturday, 22 February 2014

NaMo replies !



In a letter to Narendra Modi , Arvind Kejriwal raised three issues / questions , viz :,



>  If you were to become PM , will you reverse the decision on gas price  ?


>  As a PM , what will you do to bring back the black money stashed in
    Swiss bank accounts  ?


>  Who is financing BJP's election campaign ?  Is it Reliance  ? What is the
    nature of your " relationship " with Mukesh Ambani  ?



No one - Arvind included - expects NaMo to reply


But , if NaMo was bent upon committing a " Political Harakiri " ,  his reply would be short - and sweet - as follows :

-----------------------------------------------------------



Dear Arvindji



Thank you for writing


I am glad that you consider my chances of becoming the next PM , to be so very high . It came as a breath of fresh air after listening to all those " gallies " from lowly Congress Netas


Of course , by envisaging me as the next PM of India , you have run the risk of being called , the B team of BJP  !


But then , how can I  stop an Aam Aadmi like you from dreaming  !


In a normal course , I would have liked to answer your letter , only AFTER , I became the PM ( - since , RTI would , in any case , oblige me to do so  )


However , since I consider you to be my " friend " ( - isn't " enemy of your enemy , a friend  " ?  ) , here are my very relevant answers to your equally irrelevant questions

  :


Q:  1


Of course , not  !




Q:  2

Of course , yes  !


Since every MP of BJP has signed an affidavit , saying he / she has not stashed away , any black money in Swiss banks


So , obviously , all the black money lying in Swiss banks , must belong to the Congressmen - no  ?


(  please note : I have no knowledge  of any banks other than Swiss banks )




Q:  3

Everyone knows who finances BJP's election campaign  !


Same guys who are financing the election campaigns of Congress , SP , BSP , DMK , AIDMK , BJD , RJD , TMC , CPI (M) ..etc etc


Since they have smaller donations , they are better placed to answer your questions


I am taking the liberty to forward to them , copies of your letter , with a request to send their replies to you directly . In future, send copies yourself


As to my relationship with Mukesh is concerned  -  he is just a friend


 Haven't you heard , " A friend in need is a friend indeed "  ?



with regards ,

Yours Transparently ,

Narendra Modi



PS :

In case you are planning to sit on a dharana outside my office in near future , I am not attending CM's office for the next 3 months


Why didn't you do the same ?


Lastly - please do not leak out my reply to a certain TV anchor ( you know who ) , who  , unashamedly digs out historical facts ,  to embarrass   my party spokespersons like Meenakshi Lekhi / Smriti Irani etc .


Very un-gallant  !


-----------------------------------------------------------

*   hemen   parekh  (  23  Feb  2014  /  Mumbai  )




Thursday, 20 February 2014

Deciding is Difficult



How do you go about deciding who shall be your candidate for the forthcoming elections  ?


For most political parties , only one thing matters most, viz :,


"  Is he ( or she ), likely to win  ? What is the probability of winning ? "


It is this same simple " rule " that people all around the World use , whether betting on a ,


>   horse  ( in a derby  )


>   batsman  (  in a cricket match  )


>   car driver  (  in Grand Prix  )


Or ,


>   politician  (  in an election  )


Nothing else matters . Ask any " Bookie "  !


But AAP  ( Aam  Aadmi  Party  ) added some more factors to be considered while selecting its candidates for 2014 elections , viz : ,


>  He must be honest and non-corruptible


>  He must not be greedy for power


>  He shall be a firm believer in AAP's " Moral Philosophy "


>  He must not have any criminal background


Except for the last point , others are very difficult to verify


But , to me , it seems AAP forgot to mention ( intentionally  ?  ) , the following , very important points :

>  He must have enough accumulated wealth or known / public , " Sources
    of  legitimate Income " , that he does not need to worry about how to
    survive on a MP / MLA's salary , while devoting full time to his duties,
    (  while remaining " Non-corrupt " )


    Not being the " only earning member " of his family is an advantage  !


>  He must be well - known amongst the local voters as a " Social Activist ",
    so that , he has a high " Recall Value " , when the voters look at his name
    on the EVM


Arvind - and his colleagues - need to explain these " Selection Criteria " to the voters , again and again , so that there is no opposition / dissent of the kind we are witnessing , upon declaration of the first list of 20 ( Celebrity ? ) candidates


Still better would be :


>   Design a Online form , listing ALL the Selection Criteria


>   Assign " Weightages " to each criteria


>   Assign a " Rating Scale " of 1 to 5 ( 1=worst / 5= Best )


>   Get 50 Core Committee  Members of AAP , to rate each " Nominee "
     candidate , for each Selection Criteria , online ( without getting
     influenced by anyone )


>   Let the software compute the " Overall Scores " for each candidate


>   Let the software compute the " Percentile Scores " for each candidate


>   Let the software declare the " Winner "  !



If 1.6 million citizens of Estonia can " elect " all the members of their Parliament  ONLINE , then surely , AAP geeks should face no problem in this utterly transparent method !


Let them read , " Wisdom of the Crowd " !



As with everything else , AAP must blaze a new path in its selection process







*   hemen  parekh  (  21  Feb  2014  /  Mumbai  )