New Delhi, Nov 8: Terming the decision to demonetize Rs 500 and Rs 1000 currency notes as a ‘cruel conspiracy’, Congress president Rahul Gandhi on Thursday said it was actually a scheme to turn the black money of Prime Minister Narendra Modi’s suited booted friends into white.
In post on social media, Rahul said,’’demonetisation was a ‘cruel conspiracy’ carried out after due consideration. The scam was a scheme to turn the black money of PM’s suited booted friends into white. There was nothing innocent about this scheme. Making any other meaning out of it would be to insult the intelligence of the nation.’’
The post by the Congress president came after Finance Minister, in a blog, defended the Government’s decision of demonetization.
In his blog on the second anniversary of Note ban, the Union Finance Minister said the 'formalisation of economy' has led to the increase in tax payer base and has in the ultimate benefited both the centre and the states. "Demonetisation and implementation of the GST curbed cash transactions in a big way. An increase in the digital transactions is visible. This formalisation of the economy has led to the tax payer base increase from 6.4 million in the pre-GST regime to 12 million tax payers in the post-GST regime," Mr Jaitley wrote in a Facebook posting. He said: "The actual consumption of goods and services being recorded as a part of the tax net has now increased. This has given a buoyancy to the indirect tax growth in the economy. This has benefited both the Centre and the States. Every State, post GST, is getting a mandatory 14 per cent increase in the taxation each year". He said despite an annual income tax relief of Rs. 97,000 Crore given to the smaller tax payers and a Rs. 80,000 Crore relief given to the GST assesses, tax collections have gone up.
On the criticism by the Congress of demonetization, Jaitley said that an ill-informed criticism of the Demonetisation is that almost the entire cash money got deposited in the banks. "Confiscation of currency was not an objective of Demonetisation. Getting it into the formal economy and making the holders pay tax was the broader objective," he sought to clarify. "The system required to be shaken in order to make India move from cash to digital transactions. This would obviously have an impact on higher tax revenue and a higher tax base," FM wrote. (UNI)