NDA regime’s new Bill, a real gamechanger
The Narendra Modi-led Government needs to be complimented for approving a Bill that comes down heavily on the black money menace. It is to be hoped that Parliament will, cutting across party lines, approve the Bill so that an important step is taken to legislate on an issue that has not just been an election promise of the ruling Bharatiya Janata Party but has also sapped the Indian economy of its strength. The Bill seeks to give a window of opportunity to those who have black money stashed abroad to declare it and pay a penalty, failing which they will face a rigorous prison term. Both these conditions are fair.
The first ensures that there is no ‘amnesty', unlike in measures which earlier Governments had taken where tax evaders had been given a chance to declare hidden income and go free on light terms. Here the penalty is a whopping 300 per cent of the tax amount evaded. If Parliament approves the Bill, the Government can expect to mop up significant amounts of money that can be put to good use, and also save on needless litigations. Those who refuse to fall in line will not only find themselves behind bars but also remain there for 10 long years — enough to break the backs of even the most obdurate tax evader. The Government's move is in keeping with its resolve to bring back unaccounted wealth of individuals and fits in with the slew of measures it has taken in this direction.
Union Minister for Finance Arun Jaitley had in his Budget speech reiterated his Government's “abiding commitment” to track down and bring back the wealth “which legitimately belongs to the country”. The Government had initiated discussions on this matter with various foreign entities and Prime Minister Modi too had raised the issue at international forums. In fact, one of the first decisions the Modi Cabinet had taken was to set up a Special Investigation Team to deal with the issue, in keeping with the directives of the Supreme Court. A clutch of names against which prosecutable evidence was collected had been put out in the public domain. The opposition parties, particularly the Congress, have been deriding the Government over its ‘failure' on black money. But this Government has already done far more in nine months than the Congress-led UPA regime achieved in 10 years of its rule on the issue. Remember, the UPA had dodged the formation of an SIT even, questioning the need to do so.
Having taken this welcome step, the Government now needs to ensure that, once the Bill gets Parliament's approval, swift steps are taken to implement the law. Rules have to be properly framed keeping in mind that they do not leave scope for loopholes to be exploited by the accused. It must not be forgotten that tax evaders often have the means to hire the best legal brains to contest their case, and these legal eagles will pounce on even half a chance to wriggle out on legalities. We have past experiences to guide us in the matter. No law can be absolutely failsafe, but efforts can certainly be made to offer an accused as little chance of escape as is possible, when that person is clearly in the wrong. The Government's resolve on successful prosecution is going to be tested, as the process of law does not end with legislation.