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Black Is Beautiful

1963:The Loknathan panel estimated that for 10 agricultural commodities in Andhra Pradesh between 1960 and '62, some 68 per cent of the turnover escaped tax.

1964:The Santhanam Committee identified the "large armoury of regulations, controls, licenses and permits" as providing new opportunities for corruption.

1974:The Venkatappiah Committee felt

1974:The Uttar Pradesh Taxation Enquiry Committee estimated that sales tax receipts in 1965-66 and 1969-70 were only 42 and 60 per cent, respectively, of the estimated tax potential.

1976: A report of Kerala's Committee on Commodity Taxation estimated that tax realisation from coconut and copra were often only a third or so of the estimated tax potential.

1978: NCAER estimated that Rs 840 crore of black income (in the form of scarcity pre-mia) was reaped in just six commodities—urea, cement, tyres, paper, vanaspati and steel—from 1965-66 to 1974-75.

1981-84: NIPFP found evidence of large-scale tax evasion in motor parts, copper, plastics, cotton fabrics.

1987-88: In his book Black Income in India, Suraj B. Gupta estimated black income to be Rs 294,408 crore, or 50.71 per cent of GDP. The break-up:

  • Evasion of personal income tax: Rs 29,441 crore 
  • Correction for underestimation of GDP: Rs 34,329 crore
  • Evasion of corporate tax: Rs 1,030 crore
  • Black gains from real estate: Rs 18,847 crore 
  • Excise duty evasion: Rs 10,951 crore 
  • Customs (import) duty evasion: Rs 5,953 crore Smuggling: Rs 12,000 crore 
  • Black income from exports: Rs 2,361 crore 
  • Evasion of state taxes: Rs 16,131 crore 
  • Black income from public expenditure (states): Rs 11,580 crore
  •  Black income from public expenditure (centre): Rs 4,950 crore 
  • Black income from private corporate investment: Rs 1,724 crore

1996:The Berlin-based Transparency

1997: Dr Pierre Helg, deputy chef de mission of the Swiss Embassy in New Delhi, quoted unofficial estimates that Indian businessmen and politicians have cash deposits of more than $80 billion (Rs 280,000 crore) in Swiss banks. Prof Madhu Dandavate estimated India's black money to the tune of Rs 100,000 crore.

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