National Debt Relief Act – Nesara Provisions

The news of the launch of the new National Income Disbursement scheme – the National ESSA (National Supplemental Security Income) was announced on a full scale on the 7th April this year. Although the details have been available since January, the actual launch was delayed due to some mishaps. This delayed the implementation date of the scheme by many months. This is the reason why, in spite of all the negative implications of the scheme, many persons are still waiting for the scheme.

The primary reason for this delay in the launch of the scheme is the fact that Finance Secretary was forced to postpone the implementation date due to the recent economic recession. He had to postpone the introduction of the national consumption tax and other relevant tax measures due to the breakdown of the country’s economy. Now, with the economy rebounding, Finance Secretary could not afford to postpone the introduction of the nesara. One of the reasons why the Secretary of Finance could not afford to postpone the scheme was the implications of the scheme for the national budget. The delayed introduction of the nesara will adversely affect the monthly disbursement of the government. Hence, the delay of the scheme has indirectly affected the monthly budgets of the government.

A further reason for the delay in the launch of the scheme is the non-availability of the fund. The scheme was supposed to have a sufficient source of funds to be implemented during its implementation. But, the reasons stated above forced the issue to be shelved. This implies that the nesara would not be able to support the uninterrupted supply of the necessary benefits to the common man. In such a scenario, the only viable option for the government is to launch the scheme with less expenditure, fewer exemptions and more transparent nesara rebate program.

The present system of income tax has plenty of exemptions, rebates and advantages. This has resulted in a situation where more people are paying taxes without really enjoying any gain or reductions. This has been made possible by the multiplication of tax brackets, exemptions and rebates. The present system of income tax has been rendered ineffective because of such complexities and complications. This has further led to the increase in the quantum of the taxes, which has not been previously witnessed in the past two decades.

Now, with the new nesara rebate program, an average citizen can pay as little as twenty-five percent of his total income and assets as tax. This would not be applicable on the pre-tax assets. Also, the rebate amount would be transferred to the account of the person, who pays the income tax. This implies that even persons having huge salaries can now claim deductions on their income tax.

The other important feature of this tax rebate program is that it will not only benefit the common man but also the common institutions and the financial bodies. This is because the amount of the deduction taken would go a long way in helping the banks and other monetary bodies absorb their loss and earn back some portion of the money lost. This is because the excess cash flow or profit will then go into their fund. With the introduction of the nesara scheme, all such problems can be sorted out easily.

One of the most crucial advantages of nesara is its treatment of the non-qualified commercial loans, which are termed as the ‘pre-paid’ loans. These kinds of loans have been popularly known as the’secured loans’. As the name clearly indicates, these kinds of loans require collateral for the loan transaction. In case of any failure to return the amount, the lender may declare the debtor to be a defaulter and impose heavy monetary penalties and possible seizures.

Moreover, nesara also makes provision for the special issues of medicinal drugs. Under the nesara of 2021, the tax on these necessities was brought down to zero. The special issues include personal consumption drugs, medicinal drugs for eye diseases, diabetes and obesity, and pet medicines. These necessities are not allowed to be traded under any circumstances, but if consumed legitimately, then they are exempted from taxation.