Panaji: RBI Governor Raghuram Rajan favoured punishing black money holders by streamlining laws that should be enforced better.
The Reserve Bank chief termed the black money issue “sensitive” and said what is important is ensuring that conditions are such that people don’t misuse the rules and regulations and don’t have the incentive to park money outside. “We also have to ensure that if somebody is hiding, why only outside, even internally there is a lot more black money, we punish him and enforce the regulations, and laws. For this we need to streamline laws, so that we enforce them better.”
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Rajan, stating that the best way to prevent law breaking is to reduce the incentive to do that, said, “Do not have 99 percent levels of taxation. For the last few decades, we have brought down our levels of taxes so much that nobody has a right to evade those taxes. Those taxes are sensible, reasonable and if they evade it, they are making mockery of the tax system.”
He also stressed a need for economic inclusion that arrives with quality of education, nutrition, healthcare, finance. A job is very important and government has to prepare the people for it by giving the right policies, he addded.
