Bangalore: As much as 40 per cent of India's GDP (Gross Domestic Product) is black money, former Chief Vigilance Commissioner N Vittal said on May 23.

Speaking at the Annual Bank Conference on Development Economics, Vittal said political parties are not bothered on eliminating black money as they depend on it to fight elections.

He suggested doing way with the exemptions, numbering in all 211, in income tax and having "zero exemption". Income of up to Rs five lakh could be exempted from tax and income above it could be taxed at a uniform 20 per cent.

To curb corruption, he said it's important to simplify rules, empower people and effective punishment.

Speaking on combating corruption and providing grievance redressal, Karnataka Lok Ayukta Justice N Venkatachala regretted that enough is not being done to implement laws to curb corruption among public servants.

In this context, he referred to Lok Pal bill and Benami Transaction Prohibition Act.

He urged the World Bank that it should convey to the Central government that it's hesitant to lend money to it unless the latter took steps to curb corruption.

PTI