Date:28/05/2004 URL: http://www.thehindubusinessline.com/2004/05/28/stories/2004052801970600.htm

Back Another VDIS in the offing?

Our Bureau

New Delhi , May 27

WILL there be yet another tax amnesty scheme like the Voluntary Disclosure of Income Scheme (VDIS) that the present Finance Minister, Mr P Chidambaram, introduced in his previous term during 1997-98?

The promise made in the Common Minimum Programme (CMP) document that "special schemes to unearth black money and assets will be introduced" raises hopes of a VDIS-II. The Government mobilised Rs 9,000 crore in VDIS-I.

But on the other hand, questions are being raised whether the "special schemes" being promised will take be a "carrot" like the VDIS or a "stick". The possibility of the latter cannot be ruled out, as it was the Left (particularly CPM) that insisted that a specific mention be made in the CMP of "steps to unearth black money and utilise it for productive purposes".

The Left's view was clearly stick and not carrot, though it remains to be seen whether the ruling United Progressive Alliance Government would choose the reverse order.