STOCK MARKET BSE NSE

India largely a non tax-compliant society: Jaitley

Demonetisation can lead to more formal banking transactions, thus nudging the society towards more compliance, Jaitley said.

Published: 11th January 2017 12:19 PM  |   Last Updated: 11th January 2017 12:19 PM   |  A+A-

An Indian one rupee coin is seen in this picture illustration taken in Mumbai . REUTERS/Files

By IANS

GANDHINAGAR: Union Finance Minister Arun Jaitley on Wednesday said that India was substantially a non tax-compliant society and demonetisation can lead to more formal banking transactions, thus nudging the society towards more compliance.

"We are substantially in terms of taxation, a non-compliance society. The narrowness of our tax base is realised by the data. Formal transactions can lead to higher revenues, and make us more compliant," Jaitley said here at the Vibrant Gujarat Global Summit 2017.

"Excessive paper currency has its own vices. There is anonymity and no history to the cash. When it moves to the banking system it is going to be a major step towards integration of informal or shadow economy into a more formal economy," he added.

With more efficient tax system and more digitisation, the economy would be cleaner, he added.

Talking about the inconvenience caused to various sectors because of the cash crunch due to demonetisation, he said difficult decisions initially pass through difficult phases.

"It can have temporary transient pain attacks, but in medium and long term, the roadmap on which country is destined to move can change," he said.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp