New Delhi, Nov 8: On the second anniversary of demonetisation enforced by the Narendra Modi government, Union Finance Minister Arun Jaitley on Thursday said the 'formalisation of economy' has led to increase in tax payer base and has in the ultimate benefited both the Centre and 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," 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 buoyancy to the indirect tax growth in the economy. This has benefited both the Centre and states. Every state, post GST, is getting a mandatory 14 per cent increase in the taxation each year." (UNI)