Black Money is one of the major problems being face by our country these days. This is one of the reasons behind the economic disparity that in turn causes social inequality which is the root cause of several problems in the country. There are a number of factors that lead to this problem. Some of these include the high rate of tax, increased cost of living, inflation, different rates of excise duty and the real estate market.
Ways to Control the Problem of Black Money
It is important to control the problem of black money as it is hampering the growth and development of the country to a large extent. Here are some of the ways in which we can control this issue:
*The tax system should be realistic. People must not see it as a burden. High tax rate would only make people look for ways for tax evasion.
*The process of tax collection must be made more efficient. The government must take certain steps to award the officials who are dedicated and sincere towards this task so as to motivate more and more officials to take this seriously.
*The government must work on its price control policy as it is also one of the reasons behind the generation and accumulation of black money.
The public sector projects must be monitored stringently so as to bring down their expenditure.
*The private sector investment expenditures must also be monitored effectively.
The government must take action against the corrupt officials who in many ways contribute to the growth of black money.
*Administrative corruption must be controlled at various levels.
*The sale and purchase of properties must be thoroughly monitored by the IT officials to ensure that people do not hide any black money in the event.
*The politicians, celebrities, senior civil servants and media people must set an example for the general public to pay their taxes.
Incentives should be given to those who provide voluntary disclosures of income.
*The exchange rates must be realistic and should reflect our comparative rates and position in the world economy.
the Modi government has taken the step of demonitization to break this illegal wealth accumulation, there is still a lot that needs to be done in order to bring this problem down. People must understand the importance of paying the tax and should refrain from concentrating black money. The small contribution each citizen does in the form of taxes helps in the development of the country.