5 ms·

I know a few construction contractors who were paid up for all the dues of previous years and were paid for the next few years projects in advance. Now, these a

I know a few construction contractors who were paid up for all the dues of previous years and were paid for the next few years projects in advance. Now, these are the kind of stories that won’t come up in the news, but in this case specifically many many jobs were saved because people with cash were clearing past dues and paying up for future. Number of jobs lost is always a debatable number, so I’d prefer not to argue on the specifics. Converting to gold bars and real estate is good. Makes sleazy transactions painful and inefficient. Easier to track.

kranner 8y ago
That demonetisation was a huge negative for the Indian economy is not up for debate anymore. Your anecdotal accounts of people getting paid in advance count for nothing against the millions of people who didn't get paid for past work and the millions of people who didn't get work that was scheduled to happen because nobody could pay. Markets were deserted, no goods were selling. This shit went on for months. Everybody who actually lived in India during the time saw this happen.
- calvinbhai 8y ago
  My anecdotal evidence is not acceptable but your generalized statements (without even an anecdotal evidence) is acceptable? I agree it was a shock to the system in the short term, and that it wasn’t as effective as everyone expected it to be. But it has certainly brought many many people into the tax fold. This means better tax compliance and more money available for infra.
  - kranner 8y ago
    I don't know if you know what constitutes 'evidence'. Saying you know a few people to whom it happened does not make it evidence of any sort. I also know people who stopped getting construction work, and shopkeepers who had dismal sales for months. Now is what I said backed by evidence? Bringing people into the tax fold means nothing if most people are added to the bottom tier where they pay nothing or very little tax. The IT department does not have the resources to audit and pursue everyone who filed nominal taxes in the financial year following demonetisation and is now reporting income below the taxable threshold. And growth in actual direct tax collection this year up to July 31 has been dismal. https://www.business-standard.com/article/economy-policy/direct-tax-collections-grow-at-6-6-and-corporation-tax-barely-1-118090300007_1.html https://www.business-standard.com/article/economy-policy/dir... We'll soon see what the extension up to August 31 netted. Unless there is a miraculous jump in collections in August, the entire 'we ended up collecting more income tax because of demonetisation' shtick will have fallen flat.

kranner 8y ago

That demonetisation was a huge negative for the Indian economy is not up for debate anymore. Your anecdotal accounts of people getting paid in advance count for nothing against the millions of people who didn't get paid for past work and the millions of people who didn't get work that was scheduled to happen because nobody could pay. Markets were deserted, no goods were selling. This shit went on for months. Everybody who actually lived in India during the time saw this happen.

calvinbhai 8y ago
My anecdotal evidence is not acceptable but your generalized statements (without even an anecdotal evidence) is acceptable? I agree it was a shock to the system in the short term, and that it wasn’t as effective as everyone expected it to be. But it has certainly brought many many people into the tax fold. This means better tax compliance and more money available for infra.
- kranner 8y ago
  I don't know if you know what constitutes 'evidence'. Saying you know a few people to whom it happened does not make it evidence of any sort. I also know people who stopped getting construction work, and shopkeepers who had dismal sales for months. Now is what I said backed by evidence? Bringing people into the tax fold means nothing if most people are added to the bottom tier where they pay nothing or very little tax. The IT department does not have the resources to audit and pursue everyone who filed nominal taxes in the financial year following demonetisation and is now reporting income below the taxable threshold. And growth in actual direct tax collection this year up to July 31 has been dismal. https://www.business-standard.com/article/economy-policy/direct-tax-collections-grow-at-6-6-and-corporation-tax-barely-1-118090300007_1.html https://www.business-standard.com/article/economy-policy/dir... We'll soon see what the extension up to August 31 netted. Unless there is a miraculous jump in collections in August, the entire 'we ended up collecting more income tax because of demonetisation' shtick will have fallen flat.