Thread by @muglikar_

MEGA THREAD on how 80:20 scheme introduced by Corrupt UPA Sarkar led to a loss of lacs of crore rupees.

Source: The Performance Audit Report CAG No. 06 of
2016 on Natural and cultured pearls, precious or semi-precious stones, precious metals, metals

Main Points👇😒

Main Points: Scheme Introduced in 2013
Scheme shut by Modi govt within 6 months of coming to power

Reason to bring scheme: Fiscal deficit was widening hence put curbs on import

Meaning of 80:20 you import X.. 80% can be sold in domestic market. 20 has to be exported

Main issues: at behest of earlier Finance Ministry these rules were relaxed for a few special importers and jewellers. U know what I mean right? 😌

Main prob: ppl did black to white conversion. For every import the govt had to forgo a lot of duty. Now into CAG report

1. The import of gold, jewellery etc., increased from ` 3,50,396 crore in 2010-11 to `3,81,515
crore in 2014-15. Export of similar goods also increased from ` 1,98,886 crore in 2010-11 to
` 2,53,940 crore in 2014-15

2. Though the Trade deficit decreased from 43 per cent (FY 11) to 34 per cent (FY 15), the
duties foregone increased from 14 per cent in FY 11 to 20 per cent of the value of imports in
FY 2015

3. Imports of gold during the audited period under the chapter 71 have suffered a negative Net
Foreign Exchange Earnings (NFEE) vis a vis corresponding exports of jewellery.

There was a surge in import of gold jewellery from Asian Countries during the year 13-14
and 14-15

On an average 64 per cent of imported gold jewellery were from Switzerland, UAE and Hong
Kong out of the 120 odd source countries. the importing countries were not being
exported to, except in case of UAE and HK. Similarly, 63% exports of
jewellery were to UAE and HK

The country trade analysis indicates repeated transactions under Chapter 71; cases of
related party transactions, inverted duty structure and re-export. trade with UAE
involving re-export did not create major economic activity while inflating the total value of
the trade

Total Customs duty forgone was ` 12,26,033 crore
for the period 2010-11 to 2014-15 in which the share of gems and jewellery sector was 25
per cent (` 3,01,042 crore).

Gaps in the valuation database management and Customs
electronic data application allowed gradual increase in trade mis-invoicing over the period
leading to foreign exchange/capital outflow

This report has revenue implication of `
1,003.37 crore in addition to systemic issues worth ` 19,522.67 crore and internal control
matters which could not be quantified.

If not for @narendramodi govt this loot would have continued. Problematic persons are those who made these policies.

Only thing that we can do is to know how pvt biz were favored while u and I suffered.

Paisa Banake baaki ke bhaag liye. Cong had made India a shop. Aao le jao