New Delhi: CPI(M) on Wednesday attacked a Chief Ministers' panel for advocating levying tax on cash withdrawals of Rs 50,000 and above in banks, likening the recommendation to coercing people to pay heavy costs for turning digital.
Taking to Twitter, CPI (M) General Secretary Sitaram Yechury also observed that the recommendation by the panel, headed by Andhra Pradesh Chief Minister Chandrababu Naidu, comes at a time when furnishing PAN is already mandatory for transactions above Rs 50,000.
"Condemn such coercion to force people to turn digital and pay heavy transaction costs. For monitoring, transactions above 50K already have PAN," Yechury tweeted.
Tweet by Sitaram Yechury
The Naidu-led committee on digital payments had on Tuesday recommended a Rs 1,000 subsidy for purchase of smart phones by non-tax assesses and small merchants and a cash transaction tax on withdrawals of Rs 50,000 and above in banks.
The Chief Ministers' Panel report, which was submitted to Prime Minister Narendra Modi by committee representative Naidu, has also made a case of lower/zero merchant discount rate (MDR) for all digital payments to government entities and cap on cash in all type of big ticket transactions.
The 'Merchant Discount Rate' is charged to a merchant by a bank for providing debit and credit card services.
Naidu also suggested insurance for all digital transactions to safeguard the interest of people going cashless.
