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NEW DELHI/MUMBAI: Your rightful indulgences like shopping, eating out, going to movies, almost certainly feature a bolstering effect on the economy. But, in that location exists a dark side which cleverly evades taxes to generate what is conversationally referred to as abusive m wholenessy. This sin economy, comprising fake and counterfeit products, smuggled and pirated goods, unaccredited gambling, bribery and prostitution, among a host of other sinister activities that go unaccounted, has a draining effect on the economy. So simply how big is the dour economy? While there argon no authentic figures, economists feel that it is in the region of 40% of Indias gross domestic product (GDP). Professor of economics, Jawaharlal University, Arun Kumar, who has written one of the most authentic books on the subject, The black economy in India, puts the figure at around 50% of the GDP. According to the latest estimate of Central Statistical Organisation (CSO), the size of the Indian economy is around Rs 61,64,000 crore. Thus, the size of the black economy, taking it at 40% of GDP, is around Rs 25,00,000 crore or around $500 billion. If black money is declared by individuals or corporate ho recitations as income, it becomes legal and would be taxed at 30%.

If all the estimated black money is declared, it could generate a tax revenue of Rs 7,50,000 crore for the establishment! This is more than total tax collection at Rs 6,41,000 crore for 2009-10. Kumar puts the potence tax revenue figure much higher at around Rs 10,00,000 crore. Surely, the government can make better use of this amount. Additional tax income to the government, said Kumar, would not only have helped the government to expand its welfare programmes, but also enabled it to sustain up more infrastructure projects. Besides, revenues of individual sectors get impact by counterfeit products. Take the fast-moving consumer goods (FMCG) industry for instance. It loses 6-7% of its turnover delinquent to counterfeit products and illegal... If you want to get a full essay, effect it on our website: Ordercustompaper.com

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