Significant increase in tax figures after demonetisation: Jaitley

Speed Post News Network

New Delhi : Union Finance minister Arun Jaitley on December 29 said the remonetisation process has substantially advanced and the RBI has very large amounts of curreny available and it will continue to support the market to the extent the market needs that kind of liquidity.

“On the November 8, the Prime Minister had asked for the country to support him notwithstanding several inconveniences suffered by people during the remonetisation period. We are extremely grateful to the people of India who have in very large measure supported the move. 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,” Jaitley said, according to a PIB release.

He said 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, said Jaitley. Already a large part of benefits of this historic move are visible. A lot more money has come into the banking system. Whats comes into the banking system gets identified with the person and therefore its impact on taxation and revenue collection is already being seen. 

Jaitley said 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% and if one factors in very large qunatums of refunds because these days refunds are also made immediately, the net increase is 13.6 % till December 19, 2016, he said.

The indirect tax figures are also available and not withstanding what the critics had predicted in all the categories, till November 30 there is a significant increase in indirect taxation. In the central indirect taxes, the increase is 26.2 per cent till 30th November. And this includes excise duties increasing by 43.5%, service tax increasing by 25.7 % and customs duties by 5.6 %, Jaitley said.

The Rabi sowing ,overall for all crops, is 6.3 % higher than the last year. Now the Rabi crop sowing been higher than last year, life insurance businesses have increased, international tourism has increased, air passenger traffic has increased, petroleum consumption has increased, the flow into Mutual Funds has increased by 11%.