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DeMonetization - Good or Bad

Discussion in 'Technical Analysis' started by nirajshah, Sep 3, 2017.

  1. nirajshah

    nirajshah Champion

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    There are many diverse views and those who are in support of BJP consider it good but others don't consider it to be a success.

    What are your views about it ??

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    nirajshah, Sep 3, 2017
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  2. suhel_b

    suhel_b Member

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    Demonetisation was to curb black money and take it out of system.
    Approx only 5-7% pays tax. Demonetisation was also to increase this tax base.
    Basically it was a bold step with good intention but in my view it's not as success as intended.
    Black money transaction are back, tax base has also not have significant increase.
    The digital transaction was increased in first few months but as money came back to market , that too is coming to pre demonetisation normals.
    The home prices are still too high, I thought it will come down , but not.
    I hoped a lot from this step because it was devastating to see that people dealing in black money paid very little tax while clean people like us paid huge. But now I can't see that has changed a bit, instead we have more taxes as various cess.
    In my view, things have not changed much and nothing will until our PM takes more tough decisions to bring these people to their knees.


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    suhel_b, Sep 3, 2017
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  3. shabbir

    shabbir Administrator Staff Member

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    GST should help but I don't think harsh steps will help because it will make people find loop holes only and the best way to curb black money is reduce the tax rate and provide benefits to the tax payers which is missing and I think GST can help in that direction.

    So I don't agree that steps should be taken to curb black money but more steps should be taken to benefit the tax payers and that way more people will join the tax regime.

    Still I think DeMo was a bold move and there can be variosu ways of looking at it and from where you are seeing it makes a difference of what you see first, the benefits or the side effects. I think as of now we can say it had more side effects but everyone thought it was good move initially.
     
    shabbir, Sep 4, 2017
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  4. chaitanya_mella

    chaitanya_mella Contributor

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    chaitanya_mella, Sep 5, 2017
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