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Government should have implemented direct tax code to stop creation of black money, says Veerappa Moily

Updated : June 24, 2019 11:00 PM IST

A report tabled by the parliamentary committee on black money highlights that it has no definite answer of the amount of unaccounted wealth generated within and outside India.

The report highlights that the absence of a uniform definition on unaccounted income coupled with the lack of accurate estimation method makes it impossible to credibly estimate the amount of black money generated within and outside India.

Bringing black money from outside the country was one of the major electoral promises of the Modi 1.0 government. In fact a special investigation team to tackle the black money menace was formed in the very first cabinet meeting of the Modi 1.0 government.

To discuss the findings of the reports CNBC-TV18 spoke to Veerappa Moily former Union minister  and Saugata Roy TMC MP and member of 15th standing committee on finance.

Moily said: "Government says that they have taken some legislative action, administrative action and judicial action but ultimately what has it led to? The committee wanted that the long delayed direct taxes code (DTC) should also be finalised at the earliest but the mother of all these things is income tax, evasion of income tax and avoidance of the income tax. So direct taxes code is a major reform which the government should have taken up. We brought about the direct tax code, we legislated on it and also wanted this to be passed by the parliament. DTC would have cut the very basis of creation of black money."

Roy said: "There were three organisations which were asked to prepare a report on the estimate of the black money. None of them were able to arrive at a definitive figure nor were they able to define black money in a proper way. So, now the ball is in the government's court, they should take some steps to take this forward."

Roy added: "Our committee has recommended that they should give a report within three months, it could not be completed in last Lok Sabha, so the report was presented today. I am sure that the finance ministry would take some steps because black money has been accumulating and with all the talk of wiping out black money, it has not been wiped out. So, I do hope, state and demand that the finance ministry will take proper steps in the matter."
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