Question
Elephant Bonds were proposed to be issued to recover
undisclosed offshore income of people, funds from which would be used for infrastructure. What is the maturity of such bonds?Solution
Elephant Bonds are the 25-year sovereign bonds in which people declaring undisclosed income will be bound to invest 50 per cent. The fund, made from these bonds, will be utilized only for infrastructure projects. It is like an Amnesty scheme to help State treasury raising tax revenues, adding beneficiaries in tax base who have not declared their assets previously
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