India’s bold and half baked move to stop BlackMoney

 

India’s Prime Minister Narendra Modi on Tuesday announced that the currency notes of Rs. 500 and Rs. 1000 denominations will not be legal tender beginning November 9. Prime Minister also added that all banks will remain closed for public work tomorrow. ‘Terror strikes at the innocent. Who funds these terrorists’ Across the border, our enemy uses fake currency and dodgy funds to sponsor terror - this has been proven repeatedly. The process of cash circulation is directly related to corruption in our country impacting the lower classes of our society. From midnight November 8 today, Rs. 500 and Rs. 1000 notes are no longer legal tender,’ Prime Minister Modi said while addressing the nation.

‘You have 50 days (From November 10 to December 30) to deposit notes of Rs. 500 and Rs. 1000 in any bank or post office. Respite for people for the initial 72 hours. The government hospitals will accept old Rs. 500 and Rs. 1000 notes till November 11 midnight,’ he added. Prime Minister Modi said notes of Rs. 2000 and Rs. 500 will be circulated soon.

‘The RBI has decided to limit the notes with higher value. There will be more purification the more we get support from you. Let’s continue the process of cleanliness and work together for successful completion of this initiative. We want to take this fight against corruption even ahead,’ he added. The Prime Minister further said that on November 9 and in some places on November 10, ATMs will not work.

Here are some imporant takeaways:

Less bang for your black bucks: Those with large amounts of large-denomination black money in cash will be hit hardest, since offloading this cash will become extremely difficult. Exchanging crores of rupees at banks will likely attract the attention of the taxman.

Less counterfeiting: These denominations were the most easily and widely counterfeited notes. Taking them out of circulation will eliminate a big source of fake notes.

Terrorism funding: A significant amount of terrorism was funded using counterfeit and/or high-denomination notes. This will also be hit badly.

Election funding: It is an open secret that elections in India are largely bankrolled by massive amounts of black money, typically in cash that are often used as direct bribes to voters. This spigot will now be shut off, disrupting the electoral system. The UP and Punjab elections will the first to face the brunt of this move.

Corruption: Most bribes across the system are typically paid in cash. While smaller amounts will not be affected, large amounts of bribes will now be limited, at least until the new denominations of Rs 500 and Rs 2000 are introduced in large numbers. But again, those will already accumulated cash will be hit hard.

Watching America vote was eye opening

 

I was watching Beme’s Exit Poll Live today, and it was awesome. Eye opening.

 

I was expecting something like this for this year’s election. But surprise, surprise. The app came from the most unlikely place. Casey Neistat’s Beme is the brainchild behind this one-day-only app.

 

Every user had a different perspective, the one reason why they based the decision on whom to vote for. It was amazing to see how this election has really skewed American’s thoughts this year.

A surprising number of people voted for neither of the two party candidates. Many voted for Garry Johnson and Jill Stein.

A whole lot of people voted for Trump because “he is not a politician”. Again a lot of small business owners voted for Trump, expecting relaxed taxation.

Most women and parents voted for Clinton. A lot of younger ones too where going with her.  And eveyone else just voted for her because they wanted the lesser of two evils.

This black guy voted for Trump !

ADHM is boring

 

This review perfectly sums up this movie. And how I felt.

Taxed Out

I was recently on holiday in Australia. While we stayed with AirBnb for most of the trip, and cooked up our own food, occasionally, we did eat from out. There was a tonne of Asian cuisine restuarants sprinkled all over the country. But what surprised me more than the range of the food available, was the cost. It was not that expensive. Sure,it was all dollars,  and we Indians tend to convert everything to rupees…  but there were lot of options for low cost meals too. And I think the main reason the cost was low was because of low taxing.

I repeatedly kept noticing that whatever we bought, wherver we ate, the tax calculated on the service was never more than 10% ! That’s it. It was just under 10% for clothing, at restuarants, and even domestic plane tickets. Amazing !

If you eat out in India at any restuarant, the taxes will come to 20% ! The bill will nicely break up this into three different taxes. There is the 14.5 % VAT. Then 5.6 % service tax. Then the government’s swach barath and kissan cess, each of .2%.  Now the new amount is 20% more than the original bill !  For a dinner for four people, you will have to pay for an absent fifth !  Then the restuarant may charge you a service charge of 10%, and they can charge whatever they want.  And if there is any alcohol, there will be an additional 20% tax on only that.

What the hell is happening ? If a country like Australia can run itself with a 10% VAT/GST, why does India need to charge 20% tax ? This might go up to 30% too. And we have more people, and therefore more people eating out on any given day. The same goes for purchases and online services .

Surely the country has no shortage of income. What they need to fix is what they are doing with all that income.

Bon Apetit ! And Happy Diwali !

India Flying

 

 

I didn't believe it, when Air India got into "Breaking News" announcing they made a profit. Because that is unbelievable. But then they did it again when they set a supposed "world record" for flying the longest non-stop flight. The news was first reported on Flightradar, and everyone else has simply copied over the content and reported it verbatim. And with the Indian government's new plan to make flying cheaper and affordable to Indians under their Udaan program, the focus is back on flying and planes.

Apparently, the government plans to cap the cost of 1-hour domestic flights to a certain amount. This will make it more affordable to the commonfolk (mango-men). But then I recalled reading another article which said that India already has the lowest prices for flying domestic !

Research by Kiwi.com, an online flight comparison site, states that the average cost per 100km to fly domestic in India is 3.25 USD !! And the low cost rate is actually lesser at 2.27 USD. And yes, currently that is the cheapest in the world. The most expensive country to fly is...UAE, with a rate of 105 USD per 100 kms. That’s about 50 times costlier.

Well this news changes everything we thought about flying in India. On one side, flyers kept complaining of hidden charges and 'convenience' fees on their flight tickets. On the other side, the airline companies complained that the cost of aviation fuel was extremely high, and that they were simply passing over that cost to the end customer, the passenger. So airline companies in India have been already providing the cheapest flights in the world in spite of these huge costs.

I hope this trend continues. India already has the cheapest telephone rates in the world, which is a mainstay of today’s living. Flying is still a distant dream for most Indians and I hope a few more of them can take to the skies, before all the Indian Airline companies get taxed to the ground.