Amid heated political controversies across the country following the cash crunch resulted due to the demonetisation policy implemented by the Narendra Modi government, Finance Minister Arun Jaitly, once again backing the note-ban policy, today, stated that he will not be withstanding predictions made by critics and claimed that there had been a significant increase in indirect taxes in all segment. The Finance Minister also clarified that the cash coming to the banks are accountable and further stated that the impact of the rigorous tax collection is already visible.
Defending the Prime Minister’s move to implement the policy putting a ban on currency notes, FM Jaitley said that the larger impact of the anti-graft-policy is visible as the cash deposited to the banks depicts the identifiable impact of tax collection. The senior Bharatiya Janata Party (BJP) MP also stated that there had been a net increase of 13.6 % on direct taxes, while the gross direct tax collection had been growing at a rate of 14.4% over the last year while the growth rate was just 8.3% in the previous year.
Jaitley further stated that, till November 30, there had been an increse of 26.2% in central indirect tax, including 43.5 % increase in excise duty, 25.7% increase in service tax and 5.6% increase in custom duty.
There had been a heated political uproar since the implementation of the demonetisation policy on November 8, by the Prime Minister, citing the need to curb the flow of black money in the country. And amid several changes in the rules, as the last date, to submit scrapped currency notes to the banks, nears, the Finance Minister asserted that the critical days of the note-ban implementation had passed and the impact will be much better in the days ahead.