Published: Fri, December 30, 2016
Economy | By Melissa Porter

Tax collection figures show double-digit growth: fm

Tax collection figures show double-digit growth: fm

"Now, the Rabi crop sowing higher than a year ago, life insurance businesses have increased by 213%, global tourism has increased, air passenger traffic has increased, petroleum consumption has increased, the flow in Mutual Funds has increased by 11%", he said.

Jaitley also noted that there was no adverse impact of demonetisation drive on the economy as warned by critics.

Finance Minister Arun Jaitley further said that remonetisation has substantially advanced and not a single incident of unrest reported after the move. "Compared to the November of 2015, on a year to year basis, all the collection of all three indirect taxes in November of 2016 is much higher", the finance minister said, speaking a day before the deadline for depositing old Rs 500 and Rs 1000 notes in bank accounts ends.

Talking of central indirect taxes, he said excise duty collections had gone up by 43.5%, service tax by 25.7% and customs duty by 5.6% till November 30. "Notwithstanding what critiques predicted, in all segments, there has been a significant increase in indirect taxes", Jaitley mentioned.

He mentioned the rise in Rabi crop sowing by 6.3 percent in last year's comparison. "The net increase seen on direct taxes is 13.6% and the Rabi crop sowing is 6.3% higher as compared to a year ago", the finance minister explained.

He further added that with the critical part of remonetization already behind us, and there being no impact on the above areas, the situation in the coming weeks is surely going to get bigger and better.

A large part of the benefits of this historical move are visible, said Finance Minister Arun Jaitley in press meet.

"We have tried to check for the month of November which could have been adversely impacted by currency replacement".

He said revenues show that the impact of note ban has not been as much as estimated by critics.

Demonetisation: As Jaitley himself says, "Assessments can be unreal, but revenue is real".

Jaitley said demonetisation had brought a large part of money into the formal banking system which had increased the ability of the banks to lend.

Asked if there a conscious attempt to reduce the currency in circulation while remonetizing, he said RBI will take that decision after assessing the requirements of the market.

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