Listing the benefits of demonetisation, Arun Jaitley said the collection of direct taxes in the financial year 2018-19 are 20.2% higher.
New Delhi| The confiscation of currency was not an objective of Demonetization, said Finance minister Arun Jaitley on Thursday. In a blog titled “Impact of Demonetization”, the cabinet minister defended the government’s decision of demonetising the currency of rupees 500 and rupees 1000 denomination. He said, “Demonetisationn is a key step in a chain of important decisions taken by the Government to formalise the economy.”
He further noted that Demonetisation compelled holders of cash to deposit the same in the banks. Listing the benefits of demonetisation, he said the collection of direct taxes in the financial year 2018-19 are 20.2% higher than the previous year. “The impact of demonetisation has been felt on the collection of personal income tax. Its collections were higher in Financial Year 2018-19 (till 31-10-2018) compared to the previous year by 20.2%. Even in the corporate tax, the collections are 19.5% higher.”
He also claimed that the government’s move has led to increased taxpayer base. “In the first four years of this Government, it has increased to 6.86 crores. By the time the first five years of this Government are over, we will be close to doubling the assessee base,” he said.
Here’s the entire blog by Finance Minister Arun Jaitley:
November 8, 2018, marks two years of Demonetization- one of the key decision in the five years tenure of the Modi government.