Business Other News 10 Feb 2017 Shaktikanta Das: No ...

Shaktikanta Das: No decision on banking tax yet

DECCAN CHRONICLE.
Published Feb 10, 2017, 1:15 am IST
Updated Feb 10, 2017, 2:41 am IST
Shaktikanta Das on Thursday said that the government has not taken any decision on levying a Banking Cash Transaction Tax.
Economic affairs secretary Shaktikanta Das
 Economic affairs secretary Shaktikanta Das

New Delhi: Economic affairs secretary Shaktikanta Das on Thursday said that the government has not taken any decision on levying a Banking Cash Transaction Tax (BCTT) on cash withdrawals of Rs 50,000 and above as suggested by the high-powered Chief Ministers’ committee. “Some suggestions have come (on imposing a tax on cash transactions). The government has not taken any decision on the recommendation of Chief Ministers’ panel. The government will go through the report very carefully and take an appropriate decision,” he said.

The AP Chief Minister Chandrababu Naidu-headed committee on digitisation had in its report last month recommended a cap on cash in all types of big-ticket transactions and a levy on cash deals beyond Rs 50,000 as it sought to discourage the use of physical currency. On cutting corporate rates for larger firms to 25 per cent, Mr Das said that it is dependent on the financial affordability of the government without compromising the spending requirements in various critical sectors like infrastructure.

 

“Two years ago the finance minister had announced that the corporate taxes will be reduced...But the government also has certain fiscal constraints. It is difficult to reduce the tax rates overnight to 25 per cent because the fiscal cost will be very high and the government will not be able to do justice to various other sectors of the economy.” On the H1B visa issue, he said that so far India is not impacted by it despite apprehensions expressed in some quarters. “H1B visa issue which is something that is still playing out. We have to really wait and watch. The government is interacting with the industry. So far as India is concerned, India has not been impacted so far,” he said.

 

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