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Following notes ban, tax collection increased: Arun Jaitley

Following notes ban, tax collection increased: Arun Jaitley

India Blooms News Service | | 29 Dec 2016, 10:48 pm
New Delhi, dec 29 (IBNS): Union Finance Minister Arun Jaitley on Thursday said income tax collections have increased to the extent of 14.4 per cent due to government's demonetisation move.

Calling the currency ban initiative historic, Jaitley informed that a lot more money has come into the banking system.

Addressing media, Jaitley said: "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 anonomity attached to it. 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 per cent and if one factors in very large qunatums of refunds because these days refunds are also made immediately, the net increase is 13.6 per cent till 19th of December," said the FM.

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 per cent, service tax increasing by 25.7 per cent and customs duties by 5.6 per cent," said he.

Jaitley also assured people that "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 said he is "extremely grateful to the people of India" who have in very large measure supported the move.

The Centre on Nov 8 banned old Rs. 500 and Rs. 1000 currency notes.