Tax collections up post-note ban: Jaitley

Ahead of expiry of the 50-day deadline for depositing the junked 500 and 1,000 rupee notes on Friday, 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 his Budget for 2017-18 on account of increased revenue collections. 

Replying to questions on when customers can see easing of curbs on cash withdrawals, Jaitley said: “That is a decision the central bank will take in consultation with everyone.” Asked about fears expressed by critics that the note ban decision will hit the economy and the GDP growth, he said, “I think one is clear, there could have been some adverse impact for a quarter or so. It doesn’t appear to be as adverse as it was being predicted. 

“But in the long term, you have to plan the economy in the long term, the changes in the system which are coming about will certainly mean more money in the banks, more money with the revenue and probably a much larger and cleaner GDP,” he said. 

Asked whether the government would take a conscious decision to reduce the quantity of money in circulation in the remonetising process, the Finance Minister said: “that is a decision RBI will take and they will be certainly guided by the requirements of the market.”