Economy

Demonetisation led to more tax compliance: Jaitley

Finance Minister refutes Cong. criticism it was a failure

Finance Minister Arun Jaitley on Thursday said demonetisation had led to formalisation of the economy and made India a more tax-compliant society.

He was responding to the Congress’s attack over the note ban.

Mr. Jaitley, in a blog post, said: “A widely stated comment has been that just because most of the currency came back into the banks, the object of demonetisation has not succeeded.”

“Was the invalidation of the non-deposited currency the only object of demonetisation? Certainly not,” he said.

The larger purpose was to move India from being a tax non-compliant society to a tax-compliant society, Mr. Jaitley said.

“This is the positive impact of demonetisation. More formalisation of economy, more money in the system, higher tax revenue, higher expenditure, higher growth after the first two quarters,” he said.

He tweeted strong rebuttals to Congress president Rahul Gandhi’s statement at a press meet that demonetisation had only benefited crony capitalists.

He also referred to Mr. Gandhi’s attacks on the Rafale deal.

“Any issue diversion by Rahul Gandhi on my Rafale questions (issued via a blog on Wednesday) will not wipe out his falsehood on Rafale. Rahul Gandhi has not read my question: the fully weaponised Rafale aircraft’s 2016 price is 20% cheaper than the 2007 offer. This is what the 2015 statement of the PM and the French President (Francois Hollande) refers to as on ‘terms better than the 2007 offers,” he said.

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Printable version | Apr 7, 2020 9:06:52 AM | https://www.thehindu.com/business/Economy/demonetisation-led-to-more-tax-compliance-jaitley/article24824091.ece

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