Telangana Chief Minister K Chandrasekhar Rao today predicted Prime Minister Narendra Modi’s demonetization drive would leads towards abolition of income tax at a later stage. After holding an extensive special cabinet meeting planning to move towards cashless economy in the state, he explained his prediction in detail.
According to him, this would multiple government’s revenues five to six times. Then there would be no need for income tax and in future there would be only two taxes. They are GST and the next tax Bank Transactions Tax (BTT).
As cashless economy will helps to bring over 98 per cent of people into tax net, as against about 1 per cent at present, Rao said this will also leads to increase in central share for state government. Recalling that already Narendra Modi government had increased states’ share of central taxes from 30 to 42 per cent, he is confident the present move would lead to much more devolution of powers to states.
Rao announced that he would initiate cashless economy practices from Siddipet constituency, which would be a role model. He is hopeful within two months the entire state would turn into cashless economy. He announced that the state government would soon introduce “TS Valet app” to promote cashless transactions.
He advised that all transactions below Rs 500 should be dealt in cash and other transactions should be done cashless. All market yards also would be brought under cashless transactions, he added.
Stating that it is bound all state revenues would fall, chief minister accused that it was Congress which encouraged black money. “Till now all governments are functioning with black money. Now Modi took a decision to put an end, for which we all should cooperate”, he said.
Rao said he had advised the Prime Minister Modi on the need to clean the political system, he said that all political party accounts should be cashless and state should fund for political campaigning. “The campaign nature should be changed. In the present TV age all leaders need not to go around. I showed a lead in this regard during GHMC polls by addressing only one public meeting”, he added.