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“It seems to appeal to a lot of very radical thinkers,” says Saurabh Mukherjea, chief executive of Ambit Capital. “By reducing cash, you force everybody into the banking system, and every transaction gets taxed. If you don’t spend, and don’t transact, you don’t pay tax.” Arthakranti activists contend their proposals would end the harassment of salaried employees who account for most of India’s 12.5m income taxpayers by corrupt income tax officers. investigate this siteThey also believe the simplified system would curb pervasive evasion. “People in India are not bothered about taxation. They have a problem with the hassles of taxation, but that will most valuable be reduced by this system,” said Adarsh Dhavan, an Arthkranti volunteer. “If the base is broader, the percentage of taxation would be very less, and people would not mind paying it.” Brazil imposed a banking transaction tax for a decade from the late 1990s. Yet later assessments concluded the taxes tended to drive transactions from the banking system, reducing efficiency and leading to higher interest rates. Still, the idea has already won influential supporters from the politically-powerful yoga guru Baba Ramdev to the former editor of Forbes India, R. Jaganathan. Mr Jaganathan, editorial director of the right-leaning Indian magazine Swarajya, recently wrote that income tax was “not suitable for Indian culture”, given its diversity and deep-rooted mindset that sees taxpaying as a matter of individual judgment and negotiation.
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