India’s Tax Evasion Scheme Brings In $9.5bn in Undeclared Income, Government Says
The Indian government has announced that its four-month tax amnesty program has brought in a significant amount of previously undeclared income and assets. The scheme, which ended on Friday, offered immunity from prosecution to those who came forward and paid taxes, surcharges, and penalties.
Highlights of the Scheme
- Over 64,275 declarations were made during the amnesty period, with an estimated value of over $9.5 billion.
- The government had contacted around 700,000 suspected tax evaders, urging them to declare their hidden income and assets.
- A group of street food owners in Mumbai declared nearly $7.5 million.
Expert Analysis
Despite the significant number of declarations, experts say that the amount declared is only a fraction of India’s total undisclosed earnings. The country is estimated to have around $500 billion stashed away in Swiss banks and overseas tax havens.
Government Response
The tax amnesty program was seen as a major initiative by Prime Minister Narendra Modi’s government to crack down on corruption and black money, which has been a major issue in the country for decades. During his 2014 election campaign, Modi had promised to tackle the problem of corruption and black money.
Quotes from Key Officials
- “This is a great contribution towards transparency and growth of the economy.” - Prime Minister Narendra Modi
- “The government plans to use the revenue raised from the scheme for public welfare initiatives.” - Finance Minister Arun Jaitley
International Implications
The move follows the release of the Panama Papers in April, which exposed how the rich and powerful use tax havens to hide their wealth. About 500 Indians were named in the leak.
Conclusion
India’s tax evasion scheme has brought in a significant amount of previously undeclared income and assets. While experts say that this is only a fraction of India’s total undisclosed earnings, it is seen as a major step forward in the country’s efforts to combat tax evasion and corruption. The government plans to use the revenue raised from the scheme for public welfare initiatives.