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Key Arguements (http://www.bbc.com/news/world-asia-india-37974423): 1) Mr Modi says is simply delivering on his pre-election promise to tackle corruption and tax evasion. 2) At the moment you can exchange up to 4,000 (£48) of the old rupees every day in cash for new 500 (£6) and 2,000 (£24) rupee notes.There is no limit to the amount that can be deposited in bank accounts until the end of December, but the government has warned that the tax authorities will be investigating any deposits above 250,000 rupees (£2,962). Breach that limit and you will be asked to prove that you have paid tax. If you cannot, you will be charged the full amount owed, plus a fine of 200% of the tax owed. For many people that could amount to be pretty much the full value of their hidden cash. 3) Most Indians resent the fact that many of the richest among them have used black money to evade paying their fair share of tax and are happy to suffer a few weeks of what Mr Modi called "temporary hardships" to see them face justice.And, so far at least, the policy seems to be popular, in spite of the long queues and the fact that much day-to-day business in India has ground to a juddering halt. They also recognise the benefits of drawing more people into the income tax net. India has very low rates of tax compared to many other countries. The tax-to-GDP ratio - how much tax is raised as a proportion of the output of the economy - was 17% in 2013. The average across the economies of the Organisation for Economic Co-operation and Development - a club of mostly rich nations - was over 34%. 4) Curbing tax evasion is part of the agenda for the "aadhaar" scheme, a giant digital database designed to give hundreds of millions of Indians a unique ID, and of the new Goods and Services tax. And reducing tax evasion can only be good for India. The more money it raises in tax, the more it has to spend on useful stuff like roads, hospitals and schools. The more the country spends on public goods like that, the faster the Indian economy is likely to grow - or so the argument goes. 5) There have been virtually no reports of violence despite the huge disruption this policy has caused. So the headlines about chaos and confusion are a bit misleading. The queues are orderly and the worst you hear are the irritated mutterings of those whose days have been wasted standing in line. 6) But some queuing may be excusable, because in one regard the policy has already been a complete success: it came as a surprise to the entire country.Think what that means. The government managed to plan this audacious policy, printing billions of new notes without anyone letting slip what was happening. Keeping a secret of this magnitude in India, a country that thrives on rumour and gossip, is nothing short of a triumph and surely a reasonable justification for a few hiccups along the way.


Jairus Antony , United States 15/11/2016 10:59:51

Key Arguements (http://www.bbc.com/news/world-asia-india-37974423): 1) Mr Modi says/is simply delivering on his pre-election promise to tackle corruption and tax evasion. 2) At the moment you can exchange up to 4,000 (£48) of the old rupees every day in cash for new 500 (£6) and 2,000 (£24) rupee notes.There is no limit to the amount that can be deposited in bank accounts until the end of December, but the government has warned that the tax authorities will be investigating any deposits above 250,000 rupees (£2,962). Breach that limit and you will be asked to prove that you have paid tax. If you cannot, you will be charged the full amount owed, plus a fine of 200% of the tax owed. For many people that could amount to be pretty much the full value of their hidden cash. 3) Most Indians resent the fact that many of the richest among them have used black money to evade paying their fair share of tax and are happy to suffer a few weeks of what Mr Modi called "temporary hardships" to see them face justice.And, so far at least, the policy seems to be popular, in spite of the long queues and the fact that much day-to-day business in India has ground to a juddering halt. They also recognise the benefits of drawing more people into the income tax net. India has very low rates of tax compared to many other countries. The tax-to-GDP ratio - how much tax is raised as a proportion of the output of the economy - was 17% in 2013. The average across the economies of the Organisation for Economic Co-operation and Development - a club of mostly rich nations - was over 34%. 4) Curbing tax evasion is part of the agenda for the "aadhaar" scheme, a giant digital database designed to give hundreds of millions of Indians a unique ID, and of the new Goods and Services tax. And reducing tax evasion can only be good for India. The more money it raises in tax, the more it has to spend on useful stuff like roads, hospitals and schools. The more the country spends on public goods like that, the faster the Indian economy is likely to grow - or so the argument goes. 5) There have been virtually no reports of violence despite the huge disruption this policy has caused. So the headlines about chaos and confusion are a bit misleading. The queues are orderly and the worst you hear are the irritated mutterings of those whose days have been wasted standing in line. 6) But some queuing may be excusable, because in one regard the policy has already been a complete success: it came as a surprise to the entire country.Think what that means. The government managed to plan this audacious policy, printing billions of new notes without anyone letting slip what was happening. Keeping a secret of this magnitude in India, a country that thrives on rumour and gossip, is nothing short of a triumph and surely a reasonable justification for a few hiccups along the way.


Jairus Antony , United States 15/11/2016 11:01:42

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