Chennai: Holding that demonetisation would never eradicate black money, VCK chief Thol Thirumavalavan on Thursday said if the Narendra Modi Government was serious in eradicating unaccounted cash it should reducing the tax burden on citizen, bring a foolproof system to abolish corruption and carry out reforms in electoral system.
Mr Thirumavalavan also alleged that the Modi Government announced demonetisation move with a “hidden agenda of satisfying the corporate” and was hell bent on privatizing more public sector undertakings (PSUs).
“Majority of the black money is generated because of wrong taxation policy. Income Tax is increasingly becoming anti-people as only government employees, middle class private employees, small time traders and others are being subjected to paying taxes while large industries escape the net,” Mr Thirumavalavan said.
The income tax burden on the middle class should be reduced drastically to help eradicate black money and the government should institute Lokpal and Lokayukta to fight corruption. “Just announcing demonetisation is not enough. Where the black money stem from? It is abundant in the field of education (in the form of capitation fee) and the government should take steps to free education from private sector,” he said.
Noting that distributing money for votes is another form of corruption, the VCK chief said the Union Government should bring electoral reforms that set a higher ceiling of Rs 2 crore for spending during the election. “The Government should come out with laws to have a upper ceiling for spending and they should ask 50 per cent of the amount to be deposited with the Election Commission,” he said. Such steps would eradicate corruption and black money and not demonetisation, Mr Thirumavalavan said.
