Open Letter to Trade Associations of India


                                         
Respected Industry Stalwarts !

This submission may shake you up and compel you to wonder how we all are being deprived of a substantial part of our valuable earning due to total inefficiency and folly of governments !

We are accustomed to pay a major portion of our hard earned income by way of Direct and Indirect taxes that take away almost 50% of our earning, e.g.
1.     Payment of direct tax  @ 30% . We paid to government Direct tax during 2018-19 a massive amount of Rs. 10.21 Lakh crores
2.    Payment of GST on all our purchases at almost 15%. Government collection in one month alone in April 2019 towards GST was Rs. 1.13 lakh crore (may exceed 14 lakh crore in current year 2019-20).

We are mechanically and very faithfully going on paying these taxes without questioning the Government of the day. As per my research there is a very logical path that if adopted by Governments then we can be saved from this usurious recovery from everybody rich to poor. The basis of this conclusion is explained herein below:  

Roadmap to Tax-free India

Emergence of the notion that Nations can live without taxes

This situation that nations can not only live but flourish by generating revenue from the huge bank of Natural Resources, Concrete assets, Financial Assets and Intangible assets like power to grant license, etc. has emerged as a sequel to my years of research - 'how to evaluate and put a value to the assets of a country'. I feel so gratified that ultimately God has rewarded me and now my research has culminated in to devising a methodology that shall enable evaluation of assets of India and every country of the world. 

This methodology explains in detail all related issues and runs into some 650 pages.  It is being brought in a document under the title “MONETIZING NATIONS” and is being sent for Copyright registration to Government of India. Thereafter it shall be put up at “INNOVATION” platform of Government of India for review by all concerned people not only in India but globally. 

This methodology shall present financial profile of every village, town, city and metro (which are called Geographical Entities – GEs, by Census of India. There are 6.58 lakh GEs in India as per 2011 census) as to the value of all assets of different kinds grouped suitably.  

The methodology shall give authentic information about various kinds of natural resources and concrete and financial assets in every Geographical Entity as actual data of stock in hand as on ‘Year-end’ date shall be entered by concerned government officials of all departments in an online Data Input Format of each of 6.58 lakh GEs.  Secondly a data base shall be prepared for prices of these assets. A sophisticated Computer program shall produce several kinds of output reports from this huge data base. 

The reports that shall be generated from this massive database would include Financial Profile of every Geographical Entity, Financial profile of every District by consolidating data of all villages, towns and cities under it, Financial Profile of every Ministry of State and Central Government. The Financial Profile of Ministries shall be computed by consolidating data concerning them in the relevant Geographical Entities.  Consolidation of data of all Geographical Entities of a State shall enable computation of a Balance Sheet of the State. Consolidation of data of all States shall produce a Balance Sheet of the country as a whole. As you know, a Balance Sheet is a statement of All Assets and Liabilities of an Enterprise on a particular date. Additional staff required to achieve this information shall be appointment of only one Chartered Accountant for every Ministry and a Chief Chartered Accountant at the Center and in every State of India.

Once financial profile of a Ministry is known then the natural query from that shall be what revenue the Ministry is generating from the assets under its control. Is it commensurate, can it be augmented? If yes, how? Thus  financial information of a Ministry shall open a flood gate of host of issues. Result shall be increase in generation of revenue from assets of every Ministry by managing them in a better businesslike manner. Isn’t it a joke that largest Railway network of the world draws support from tax revenue and cannot generate sufficient income from its operations? And similar will be the story of every Ministry once value of assets under their control is known.

Government shall start generating more revenue from its assets.  The pressure on tax revenue shall start decreasing. Extracting hard earned money from people  is a heartless job that all governments have to do.  It can be safely assumed that Governments all over the world shall welcome this transformation of earning revenue for administering the country from marketing goods and services produced from assets at their command. As the income from assets shall start rising dependence on taxes shall start reducing and a day shall come when all monetary requirements of a country shall be met from revenue of its assets. Result, a Tax-free regime! 

Ahoy, can you  believe it can ever happen? No, because we have been brought up in an environment where revenue from taxes is the Rule and not exception. My joy is that I am foreseeing it happening one lucky day.  This experiment shall be first started in my country India and so India shall be the first Tax free nation. In all likelihood next election of 2024 in India shall be fought on this plank – Tax free India and for this even the richest people shall rush to cast their vote because taxes bite them most.

Things are not so Rosy
For a Tax-free regime to become a reality a qualitative transformation shall be required in thinking of our rulers. Country is ruled by two cadres – Executive and Legislators. Executive are Secretaries and Legislators are Ministers. These people have their own priorities. Executives are bound by various kinds of rules and regulations. They run the risk of losing their position and risk of investigation if any of their decision goes wrong. Legislators are elected by voters of their constituency. So their first priority is to provide more facilities for their voters. Working under such environment it is doubtful if both these authorities can think out of normal box.   A revolutionary step may backfire also costing them their job. Hence a new cadre of CEOs may have to be brought in from commercial world.

CEOs (Chief Executive Officers)
A CEO is trained to generate commensurate revenue from the resources provided to him by the Entrepreneur. A CEO has to be a EARNER in contrast to a Minister who suffices in being a good SPENDER. A politician’s primary attention is to create good living condition for their voters.  Resources for this expenditure is available to them from tax revenue which is earned painlessly by Government.  In contrast CEO has not only to give commensurate return but it is even more important that the revenue goes up every successive year. A CEO loses importance as soon as revenue of an enterprise stops growing.

So creation of a new Cadre of CEOs for every Ministry may be one of the necessary steps to achieve the noble goal of a Tax-less Society if our Bureaucrats and Ministers cannot rise to the requirement !

I have been a CEO in good part of my life so I shall attempt to make an appropriate work plan for every ministry of government of India on the basis of published data whereby they start earning more revenue, generate more employment and provide good quality of goods and services to the people at economical price.  i shall publish my study on my blog under the series “Roadmap to Tax Free India" !

Mr M.K. Agarwal
Retd CEO
Twitter handle :  @Ramsewak
Mumbai, India

P.S. I have already sent  letters to Hon’ble Prime Minister, Finance Minister, Railway Minister, Infra Minister, Chief Economic Adviser. These can be seen at my blog: mynotestopmofindia.blogspot.com/

I am enclosing a PPT that shall give you an idea of my research.  
I shall be glad to share my Research paper on Monetizing Nations, running in to some 650 pages, for review by any Economists.

Due to precarious health I am confined to my house and cannot undertake any physical activity but God is giving me energy to share my thoughts based on my knowledge and experience on social media.

I am seeking an Alliance Partner who can present my concept to Governments of India and put it in to practice.

Disclaimer: The article has been compiled for the purpose of providing general knowledge only.  Viewers should make further research on the subject for taking any decision which can have consequences.  This information has been collected through secondary research and publisher is not responsible for any errors in the same

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  1. India China Chamber of Commerce & Industry
  2. Federation of Indian Export Organizations
  3. Indian Bullion Market Association
  4. Indian Drug Manufacturers’ Association
  5. Textile Machinery Manufacturers Association
  6. Indian Pharmaceutical Association
  7. India International Trade Centre
  8. SME IMPORTERS ASSOCIATION OF INDIA
  9. SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERS
Email: siam@siam.in
0.BUILDERS ASSOCIATION OF INDIA
Email: bai@vsnl.com, bai@bom5.vsnl.net.in

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