Negating the ill effects of demonetisation and highlighting the positive impact on tax collection, Finance Minister Arun Jaitley has said that the effect of note ban is evidently visible with the country’s tax collection figures showing double-digit growth. Jaitley highlighted that till November 30, there has been a 26.2% rise in central indirect tax collection and till December 19, direct tax collection increase has been to the extent of 14.4%.
In central Indirect Taxes, Finance Minister has said that excise duty up by 43.5%, Service tax up by 25.7 % & Custom Duties up by 5.6% till Nov 30, 2016 and also added that life insurance, international tourism, petroleum consumption, flow into mutual funds has increased by 11%. On the GDP impact, he said that there could have been adverse impact of demonetisation on GDP for quarter or so, but it is not as bad as predicted.
On the liquidity situation in the markets, Jaitley has stated that a large part of old currency notes have been replaced and more notes of Rs 500 being increased. He also said that demonetisation has brought a large part of money into the banking system which has increased the ability of the banks to lend. He further said that with the critical part of remonetisation already behind them and there being no impact on the above areas, the situation in the coming weeks is surely going to get bigger and better.