The BJP government is doing a fine job in eradicating black money from India. That being said, it can definitely do better. Here are some of the ideas that came to my mind and some which I gathered from internet on how to eradicate black money from India. Black money is a huge problem in India and I thought we need to have a list of things that must be done to do away with black money from India.
1. Enforce digital payments including mobile wallets, credit and debit cards to all shopkeepers. All shops must have display board stating that they are accepting such type of payments.
2. For shopkeepers who are still stubborn in still using cash and no bills, a simpler yet immediate way should be made – for instance, a small portal or public crucification that would harm their reputation or humiliate them so that they start taking digital payments and thereby, finally start paying taxes. Customer should be empowered in someway to chose the payment mode. For those vendors that say no to online transactions should be boycotted in legal way and their shops should be closed down.
The merchants seem to indulge in discouraging digital transactions. They have all sorts of excuses for that. One merchant during the arguments accidentally mentioned that this digital move was resulting in all transactions tracked and higher Income taxes. I know people including the low income group people are in favor of BJP’s government move.
3. In Delhi, Major black money is being generated by whole sale markets like Sadar bazar, Azarpur mandi, Chawri bazar, chandni chowk, karol bagh, kashmeri gate etc. Government should have checkpoints at various places so that nothing can be sold without proper VAT tax bill. Also, tweak taxation policies to encourage them to start issuing bills.
The hurdles in less cash transactions and suggested solutions are as follows:
1. Difficulty in transactions due to low internet penetration, slow connectivity. It can be overcome by improving the infrastructure to offer fast reliable, secure connection.
2. The online transactions are costlier than cash due to various charges. This can be eliminated by issuing cards without issue and annual fee by banks. The service charges and many other charges to be totally removed.
3. All daily TV Soaps/Serials should include scenes of 30-40 seconds of digital/cashless transactions explaining how to carry them out. And this should continue for at least a week. Ladies in small towns and villages are most fearful of digital payments and this will educate them and help them to gain some confidence.