The TOP Tax syst em suggest s dist ribut ion of mont hly rat ions in t he form of cash equalling t he t ot al cost of grains and subsidy port ion of kerosene/ LPG, sugar, cooking oil, t ransferred direct ly t o t he M ain Savings Account s (M SA) of families, w hose annual incomes are less t han Rs.1, 50,000 or as decided by t he Government at t he budget present at ion every year. The mont hly cash t ransfers should be made on t he 1st of every mont h t o t he w omen’s M SA of each family. This syst em w ill serve eight purposes. (1) The empow erment of w omen can be achieved at least t o some ext ent . (2) The misuse of unut ilised rat ion (rice/ w heat , kerosene, sugar, cooking oil et c.,) by t he dealers w ill be curbed. (3) There w ill be no adult erat ion of diesel and pet rol w it h unut ilised / misused kerosene t hrough PDS. (4) The hit hert o circuit ous, cost ly and corrupt ion ridden PDS w ill be gone. (5) The prices of commodit ies w ill come dow n subst ant ially. (6) People can buy qualit y grains of t heir choosing by using cash. (7) The price of kerosene can be made on par w it h diesel eliminat ing adult erat ion of diesel and pet rol. (8) The misuse of LPG for commercial purpose w ill be t ot ally curbed. (9) The huge expendit ure cost of government machinery used for PDS w ill be saved.
The amount of cash t ransfer w ill be decided at every mont h based on t he prevailing prices of grains at ret ail market . The mont hly rat ion w ill be equal t o (=) number of KGs of rice/ w heat/ w heat flour allot t ed t o each family x price+ subsidy port ion of sugar + subsidy port ion of kerosene/ LPG + subsidy port ion of cooking oil . So t he less/ low income group people w ill get t heir st aple grain at free of cost and t ot al subsidy port ion on kerosene, sugar, cooking oil, cereals t hrough cash t ransfers.
So t here w ill be only one Public Dist ribut ion Syst em (PDS) for bot h Cent re and all St at es combined t oget her t hrough Banks/ banking service cent res. So t he huge government machinery is not required for t he PDS saving lot of public money. The cost of t he cash t ransfers w ill have t o be shared in t he rat io of 70% by St at es and 30% by Cent re exact ly in t he same rat io of revenues suggest ed in t he TOP Tax syst em. See page 5 and 6.
Similarly t he fert ilizer subsidy amount can be t ransferred direct ly t o t he farmers’ M ain Savings Account s as illust rat ed in t he page number 11 facilitat ing t he t ot al removal of subsidy on fert ilizers and it s misuse by fert ilizer companies.
The fift h and most import ant object ives of banks/ banking service cent res w ill be t he management of every individual’s all movable and immovable propert ies in elect ronic/ digit al format s in t he five separat e folders in M ain Savings Account (M SA).
In t he suggest ed TOP Tax syst em t he M ain Savings Account (M SA) w it h five folders of each person shall be ut ilised as t he de-mat account of t hat person for holding money, debt money, movable and immovable propert ies like shares, lands, plot s, flat s, gold, silver, jew ellery, ornament s, very high valued art icles, mot or cycles, cars, ot her vehicles and all ot her propert ies/ asset s. While purchasing or selling, t he t ransfer of t hese asset s/ propert ies from one person t o anot her person shall be made from one person’s M SA t o anot her person’s M SA t hrough banks/ service cent res in an elect ronic form. Under t he TOP t ax syst em, lands, plot s, flat s or ot her propert ies purchased should be made t hrough main savings account only. If any person buys land, plot , flat or any ot her propert y anyw here in India t he ext ent and nat ure of t he propert y w ill be credit ed in his M ain Savings Account and t he same propert y w ill be debit ed from t he seller’s M ain Savings Account (M SA). Whenever he/ she sells any propert y t hat is credit ed in his M SA, t he same w ill be debit ed from his/ her M ain Savings Account
and t he same propert y w ill be credit ed in t he buyer’s M ain Savings Account (M SA). Just like shares t here w ill be no paper document s for movable/ immovable propert ies. Unlike cash t ransfers t he buyer’s presence and signat ure/ aut hent icat ion shall also be needed for any movable or immovable propert y t ransact ion.
The overall possible component of TOP Tax on goods/ services is show n in the follow ing tables. The possible TOP Tax on money flow s in consumer, retailer, dealer, manufacturer chain
Table No.1: TOP Tax on High valued Goods/ Services (M edium and Heavy) industries St age of supply chain (money flow ) From Consumer t o Dealer(price) (cheque/ debit card/ net t ransfer Consumer
Ret ailer(commission)
From Dealer t o M anufact urer(cheque/ debit card/ net t ransfer)
From M anufact urer t o Raw mat erials, M an power et c,(cheque/ debit card/ net t ransfer)
TOP Tax=12% 4% 4% 4%
Table No. 2: TOP Tax on Low priced goods/ products (Small scale and cottage industries)
St age of supply chain (money flow )
From Consumer t o Ret ailer(cheque/ debit card/ net t ransfer) (cash)
From Ret ailer t o M anufact urer(cheque/ debit card/ net t ransfer)
From M anufact urer t o Raw mat erials, M an power et c,(cheque/ debit card/ net t ransfer)
Tot TOP Tax=8% nil 4% 4%
Table No.3 TOP Tax on low priced goods/ products/ articles (small scale industries) w hen marketed at State and National level.
St age of supply chain (M oney flow s) Consumer Ret ailer (Cash) Ret ailer Dealer(cheque/ debit card/ net t ransfer)
Dealer
M anufact urer(cheque/ debit card/ net t ransfer)
M anufact urer Raw mat erials, M an power et c.(cheque/ debit card/ net t ransfer) Tot al=12%
t op t ax
nil 4% 4% 4%
Table No. 4 TOP Tax on Agriculture Produce from small and marginal farmers St age of supply chain
(money flow s)
from Consumer t o Farmers(cash)
From Farmer t o Farm input s(cash)
Table NO.5: TOP Tax on Agriculture Produce from semi medium and medium farmers (local and district level consumption)
St age of supply chain (M oney flow) From Consumer t o Vendors (cash) From Vendors t o Farmers (cash) Farmers t o Farm input s, M an pow er et c,(cheque/ debit card/ net t ransfer)
Tot al TOP Tax=4% nil nil 4%
Table No. 6: TOP Tax on Agriculture Produce from large Farmers (State, National level consumption and exports)
St age of supply chain(money flow ) Consumer t o ret ailers (cash)
From Ret ailers t o Traders(debit card/ net t ransfer) from Traders t o Farmers(cheque/ debit card/ net t ransfer)
From Farmer t o Farm inputs, man pow er
et c,(cheque/ debit card/ net t ransfer)
Top t ax=12 nil 4% 4% 4%
Table no: 7 TOP Tax on small hotels, motels, restaurants and dhabas etc,
Cust omers t o ow ners (cash)
ow ners t o groceries, salaries and ot her input s
Tot al TOP Tax on money flow s
Nil 4%(cheque/ debit card/ net
t ransfer)
4%
Table no: 8 TOP Tax on star hotels
from Cust omers t o
ow ners (debit card/ net t ransfer)
From ow ners t o groceries, salaries and ot her input cost s(cheque/ debit
card/ net t ransfer)
Tot al TOP Tax on money flow s
TOP Tax=4% TOP Tax=4% 8%
Table no: 9 TOP Tax on running of schools and colleges at low er fees
From Parent s t o
management (cash)
M anagement t o t ow ards salaries, mat erials and ot her input cost s(cheque/ debit card/ net t ransfer/ )
Tot al TOP Tax on money flow s
Table no: 10 TOP Tax on running of schools, colleges, universities and other institutions at higher fees and donations.
parent s management (cheque/ debit card/ net t ransfer)
management salaries, mat erials and ot her input cost s(cheque/ debit card/ net t ransfer)
Tot al TOP
Tax on
money flow
TOP Tax=4% TOP Tax=4% 8%
The effect of TOP Tax on film industry
Table no: 11
view er t o t heat re/ exhibit er
exhibit er/ t heat re t o dist ribut or
dist ribut or t o producer
From producer t o product ion/ expendit ur e/ salaries
Tot al TOP t ax
( If) CASH Online t ransf er 4%
Online t ransfer=4%
Online t ransf er=4% 12%
Debit card=4% 4% 4% 4% 16%
Apart from t he TOP Tax, t here w ill be no ent ert ainment t ax on film indust ry. Also t here w ill be no ot her t axes t hat are being present ly imposed on raw film, cameras and all ot her equipment s and service t axes in t he ent ire product ion st age.
Table no: 12 TOP Tax on Real estate sector
From Buyer t o
developer/ builder(cheque/ debit card/ net t ransfer
Builder/ developer t o raw mat erials and ot her input cost s(cheque/ debit card/ net t ransfer
Tot al TOP Tax on money flow s
TOP Tax=4% TOP Tax=4% 8%
Table no: 13 TOP Tax on low priced items/ goods/ articles/ fruits/ edibles etc,
consumer t o st reet vendor/ seller/ haw ker(cash)
Vendor/ seller/ haw ker t o ret ailer/ w holesaler/ input s(cash)
Tot al TOP Tax on money flow s
TOP Tax=nil TOP Tax=nil nil