Critical part of remonetisation already behind us: Jaitley

The net increase in the income tax so far has been to the extent of 14.4 percent

GN Bureau | December 29, 2016


#Remonetisation   #Demonetisation   #Arun Jaitley   #Cashless Economy   #Cashless  


“Assessment can be unreal but revenue is real. And therefore many of these indicate that now with the critical part of the remonetisation already behind us, and there being significant impact in large number of these areas, it should certainly be much better in the weeks and months to come than it was in last six weeks,” finance minister Arun Jaitley said on Thursday.

“Of course there would be areas which would be adversely impacted, but what was predicted by the critics has to have rationale with the revenue collection,” he told the media.

Jaitley said that the remonetisation process has substantially advanced and what is significant is not a single incident of any form of unrest has been reported in the country.

“The RBI has very large amounts of currency available and it will continue to support the market to the extent that the market needs that kind of liquidity. Amongst the currency which was in circulation on November 8, a very large part has already been replaced and would continue to be replaced to the extent that market requires that currency. More and more notes of Rs 500 are also being released through the banking and post offices and therefore we can see a lot of currency coming into recirculation which is enabling the banking system and the ATMs to further augument the supply itself,” he added.

The minister said that already a large part of benefits of this historic move are visible. A lot more money has come into the banking system. Cash has an anonymity attached to it. What comes into the banking system gets identified with the person and therefore its impact on taxation and revenue collection is already being seen.

“The ability of the banks to lend has now increased. The revenue figures itself are more significant. We have till December 19, the direct tax figures of income tax which are now available and the net increase in the income tax so far has been to the extent of 14.4 percent and if one factors in very large quantum of refunds because these days refunds are also made immediately, the net increase is 13.6 percent till 19th of December.”

Jaitley said that the indirect tax figures are also available and there is a significant increase in indirect taxation. In the central indirect taxes, the increase is 26.2 percent till November 30. And this includes excise duties increasing by 43.5 percent, service tax increasing by 25.7 percent and customs duties by 5.6 percent.

Also read: Are we ready to go cashless?

Comments

 

Other News

Four trends that will shape healthcare post-Covid

The Covid-19 pandemic has disrupted economies and healthcare systems across the world. Even in the countries like the US that have the highest spend on healthcare and public health emergency preparedness, the impact of coronavirus pandemic on health and livelihoods of people has been tremendous. There are

India to play leading role in global revival: Modi

India would play a leading role in the global revival, prime minister Narendra Modi said on Thursday, as he addressed the inaugural session of India Global week via video-conference. He said that this is closely linked with two factors. “First is - Indian talent and second is India`s

BMC spells out numbers to counter Fadnavis’ claims

The BrihanMumbai municipal corporation (BMC) has countered Maharashtra leader of opposition Devendra Fadanvis’s suspicions of fewer Covid-19 tests, as it outlined various measures it has adopted since the first test conducted on February 3, and how it has gradually brought down the number of cases in

Mumbai opts for “most liberal Covid-19 testing” in the world

As part of the four T strategy of trace-test-track-treat, Mumbai – the most affected city in India – has decided to make Covid-19 tests accessible to all. The municipal corporation of Greater Mumbai (MCGM) has come out with guidelines allowing all laboratories to conduct RT-PCR (

Exit the Dragon, Enter the Tiger

In a major development on July 6, the Chinese army started moving back its tents, vehicles as well as troops from locations where disengagement was agreed upon in eastern Ladakh’s Galwan Valley. This is a significant milestone in regional geopolitics with India having been successful in isolating the

Hiranandani Group launches ambitious data centre project

With the Covid-19 pandemic pushing more online activity and the capacity usage of data centres going up, India’s largest data centre (DC) building and the biggest tier-IV data centre, Yotta NM1,the  second largest in the world, has been launched in Mumbai. The launch event on Tue



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter