Adopt carrot and stick policy to get money from Swiss banks

Industrialist Rahul Bajaj today said the government should adopt a carrot and stick policy to bring back Indian money stashed in Swiss banks and suggested that identities of account holders should be protected.

"Tax this money at the maximum tax rate prevailing in the country and give them (account holders) the carrot that after the tax, the money will be legal. Give them a strong stick... a time frame and say that after this 100 per cent of their money will be taken away," the Independent member said in the Rajya Sabha.

Participating in a discussion on the Finance Bill, he demanded steps to bring back the money and suggested that the identity of account holders be protected. Even government officers should not come to know the names, he said.

Saying there are various ways to do it, Bajaj suggested allowing account holders to bring back the money through "bearers's bond", which will automatically enable the government to tax it.

He said that otherwise only small people will come out to declare their deposits but not the big ones adding, "there are very big people", whose money is deposited there.

Bajaj said since account holders will be allowed to bring back their money only after paying tax, the "ethical question" surrounding the issue will also go away.

The noted industrialist felt that the Switzerland government on its own was not going to allow this money to be returned to India.