No amnesty to tap black money this timeas in the case of VDIS introduced by P Chidambaram in his previous avatar as FM, says FM-30march 2004(old news)

No amnesty to tap black money this time, says FM



Tax evaders beware! The special schemes to tap black money being contemplated by government may not provide any amnesty as in the case of VDIS introduced by P Chidambaram in his previous avatar as Finance minister.

‘‘I didn’t find the word amnesty there (Common Minimum Programme). The word is special schemes,’’ Finance Minister P Chidambaram said when asked whether the new schemes would be like tax-amnesty VDIS.

The Voluntary Disclosure of Income Scheme implemented by Chidambaram in 1998 enabled the government to mop up a whopping Rs 10,300 crore, but it was widely criticised as it penalised honest tax-payers and rewarded evaders. Though Chidambaram did not indicate what the new schemes would be like, official sources say it would not offer any amnesty this time.

Chidambaram also indicated that there would be more than one scheme unlike in 1997-98 when the United Front government offered only one avenue to convert black money into white by paying a flat 30 pc tax on voluntarily disclosed income. The common minimum programme, released by Prime Minister Manmohan Singh last week, said ‘‘special schemes to unearth black money and assets will be introduced’’.

The CMP, which outlines the economic agenda of government, also said ‘‘provisions to deal with speculators, hoarders and black-marketeers under the Essential Commodities Act will not be diluted in any way’’.

The measures are widely seen as efforts to increase the tax: GDP ratio through improvement in compliance, expansion of tax-payers base and making tax administration more efficient.