What is the ArthaKranti proposal ?

i. Withdrawal of existing taxation system completely*

 (except customs / import duties)• All central, state and local government taxes — direct

as well as indirect.



ii. Every transaction routed through a bank will attract a

certain deduction in appropriate percentage (say two per

cent) as a bank transaction tax (BTT) (a single point tax

deducted at source) 
• This deduction is to be effected on receiving / credit

account only

• This deducted amount will be credited to different

government levels like Central, state and local ( as say,

0.7 percent, 0.6 percent and 0.35 percent respectively. )

• Transacting bank will also have a share [say 0.35 percent]

in the deducted amount as the bank has a key role

to perform.



iii. Cash transactions will not attract any tax.



iv. Withdrawal of high denomination currency. ( say

above Rs 50. )

v. Government should make legal provisions to restrict

 cash transactions up to a certain limit ( say Rs 2,000. )

This means, cash transactions above this limit will not

 enjoy any legal protection.