Finance Minister, Arun Jaitley did not want to hazard a guess on the quantum of disruption caused by the government’s demonetisation drive, but said he was confident that the impact wouldn’t last for long. He was speaking at a public forum in the national capital on Friday. India is likely to remain one of the fastest growing economies in the world, despite demonetisation, added Jaitley
Country Welcomed Demonetisation
Jaitley said that the country has welcomed the decision to ban old Rs 500 and Rs 1,000 currency notes by Prime Minister Narendra Modi on November 8, despite stories of the cash crunch at banks, reports of people dying in queues and the resultant chaos.
Some disruption is bound to be created due to the switchover but long term advantages (of demonetisation) are huge. Only the size of the paper currency will decrease but the volumes of trade and business will increase.Arun Jaitley, Finance Minister
The Long Wait For GST
The demonetisation move has already thrown a spanner into the passage of the already contentious Goods and Services Tax (GST) Bill, with some state governments, formed by opposition parties like the Trinamool Congress, threatening to hold the indirect tax legislation to ransom. The finance minister cited a constitutional compulsion to have GST implemented before September 16, 2017, failing which there will be no taxation in the country.
The constitutional amendment that was notified on September 16, 2016 says that existing indirect tax regime can run for year and any delay would mean there will be no taxation from Sep 17, 2017Arun Jaitley, Finance Minister