The occurrence of black money is common in today’s world. Money that is earned illegally or hidden from sources at the same time evading tax from the government are common practices for money laundering.
Black money’s problem has contributed to various other issues as well. Falsified information about the country’s economy are being disseminated which will heavily impact the country’s performance. Tax evasion accumulations cause a major threat on the nation’s fiscal system due to the country is is completely dependent on the tax revenue.
There are a lot of factors which causes money laundering or black money to happen. One of the main reason is because of the high tax rate set by the government. Other reasons being the rates being set different for excise duty, the policy of price control, the market of real estate, quota system and inflation. People look for other ways to mask their income from the government without having to pay tax.
This issue must come be stopped before it gets worse. While the government is taking steps to eliminate this problem it cannot achieve success in this direction if the public doesn’t support.