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  1. 1 year of demonetisation: Status quo needed to be shaken up as excessive cash led to tax evasion, Arun Jaitley

1 year of demonetisation: Status quo needed to be shaken up as excessive cash led to tax evasion, Arun Jaitley

Arun Jaitley's address comes a day before the first anniversary of demonetisation. Earlier in the day, he said that the country has moved to a cleaner, transparent and an honest financial system due to demonetisation and it will benefit the future generation.

By: | Updated: November 7, 2017 4:13 PM
(Image: PTI)

Finance Minister Arun Jaitley on Tuesday said that the status-quo needed to be shaken up, which was excessive domination of cash usage at 12.2% of GDP in India. He further said that when there is excessive cash domination, there is more tax evasion. The taxpayers in these countries not only pay for themselves but also for tax evaders; double whammy on taxpayers, FM Arun Jaitley said while addressing a press conference.

The Finance Minister also said that cash transactions are also a cause of corruption in the country. With less cash in the economy, it is not that the corruption will end, but it will become difficult,” Arun Jaitley said. Listing the reforms taken up by the Narendra Modi government, Arun Jaitley said that the government has taken several steps like Benami property, indirect tax reform.

Arun Jaitley’s address comes a day before the first anniversary of demonetisation, on which both the BJP and the Congress have locked horns. While the Congress has called for marking the day as black-day, the BJP is going observe it as black money day. Earlier in the day, Arun Jaitley in a series of tweet also hailed demonetisation and said that the number of stone-pelting activities reduced due to cash-ban. He said that the country has moved to a cleaner, transparent and an honest financial system due to demonetisation and it will benefit the future generation.

On November 8, 2016, Prime Minister Narendra Modi, in a televised nationwide address, announced to ban high-denomination notes of Rs 500 and Rs 1,000, and announced new notes of Rs 500 and Rs 2,000. The public was given 53 days to deposit or exchange old notes. Then, terrorism, corruption and black money were at the centre of Prime Minister’s decision to ban high-value notes.

“To break the grip of corruption and black money, we have decided that the 500 rupee and 1,000 rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016. This means that these notes will not be acceptable for transactions from midnight onwards. The 500 and 1,000 rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper,” the Prime Minister had said.

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