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Note ban effect not adverse, tax collection up: FM Arun Jaitley

Note ban effect not adverse, tax collection up: FM Arun Jaitley
Union Finance Minister Arun Jaitley on Thursday said a large part of currency has been replaced and more notes of Rs. 500 are about to be released.

“Remonetisation has substantially advanced and not a single incident of unrest reported.” More currency was being re-circulated and the ability of banks to lend had increased, he claimed.

“Till December 19, mop up of direct tax has risen 14.4 per cent, indirect tax grew 26.2 per cent; central excise went up 43.3 per cent and Customs rose by 6 per cent,” he said.

On the agricultural front, he said, Rabi sowing had risen 6.3 per cent over last year.

"The critical part of remonetisation is now behind us, it will be much better, going forward", Mr. Jaitley said. The life insurance business had seen an upward trend, petroleum consumption had increased and so were tourism and investments in mutual funds, he asserted.

The Finance Minister, however, admitted that though "there could have been an adverse impact of demonetisation on GDP for a quarter or so, it is not as bad as predicted." The critics were proved wrong, he said.

Rubbishing critics, Finance Minister Arun Jaitley on Thursday said the effects of demonetisation were not as adverse as was predicted and asserted that there has been a sharp jump in tax collections and economic activity including in winter crop sowing.

Ahead of expiry of the 50-day deadline for depositing the junked 500 and 1000 rupee notes tomorrow, he said the remonetisation process has substantially advanced, significantly without a single incident of unrest anywhere in the country.

However, talking to PTI the Finance Minister refused to hazard a guess on the GDP growth for the year or the possible impact on tax proposals in the his Budget for 2017-18 on account of increased revenue collections.

Double-digit growth in India's tax collection figures: Jaitley
Finance Minsiter Arun Jaitley on Thursday said that the impact of demonetisation is clearly visible with the India's tax collection figures seeing double-digit growth.

"The impact of demonetisation on tax revenue and collection is already visible. There has been a 26.2 per cent increase in central indirect tax collection till November 30. Till December 19, direct tax collection increase has been to the extent of 14.4 per cent," Jaitley said at a press conference here.


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