Union Minister of State for Power Piyush Goyal on Saturday said lower tax rates will be the direct fallout of demonetisation, but did not stipulate a time frame on when it would happen. Delivering a talk on the “importance of demonetisation” organised by the state BJP here, Goyal said multiple benefits, including lower tax slabs, lower inflation and lower interest rates, are in store for honest citizens.
“Once black money is weeded out, there will be equal competition. As much as 25% of the economy is in the unorganised sector and is not reflected in the Gross Domestic Product. Once this sector is brought to the mainstream, it will boost the economy. People can buy houses at lower EMIs. In all, the standard of living of honest citizens will improve.”Goyal pondered over the reason for the increase in high-denomination notes from 34% in 2004 to 79% in 2012 (during the UPA-I and part of the UPA-II regime). “There was a feeling that the country could not function without scams. Today, the honest are feeling privileged, while the dishonest are screaming,” he said.The minister said a cashless economy will boost business and also provide impetus to small and medium entrepreneurs, adding that channelising business transactions through banks will help in maintaining credit history. “Banks can sanction loans to entrepreneurs within minutes due to the presence of a credit history,” Goyal said. Responding to a written query from the audience, Goyal said that the Rs 2,000 notes were introduced to maintain secrecy before announcing demonetisation. “Replacing the old high-denomination notes with only new Rs 500 notes would have taken nearly one-and-a-half-years of continuous printing of the new notes and the secrecy would have gone for a toss,” he said. Goyal said no transaction fee will be charged from consumers for making purchases through debit cards.

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