Demonetisation has helped bring accountability to money: Goyal

The demonetisation of high value currency notes on November 8 last year has brought accountability to money, according to Minister of State (Independent Charge), Coal, Power, Renewable Energy, and Mines, Piyush Goyal.

Addressing presspersons on the sidelines of the FICCI Business and Climate Summit, Goyal said demonetisation has brought cash into the banking system. Now, those who own the money have been identified, and they will be taxed.

Goyal diverted a question on the quantum of black money left or identified through demonetisation to the Indian National Congress. He said, “It is the Congress party that knows where and how much black money is left. If I knew, I will go after it.”

Finance Minister Arun Jaitley, too, had expressed similar views and defended the demonetisation exercise. Jaitley said it has been misunderstood as an attempt to prevent cash deposits. He said, “The main objective of demonetisation was formalisation of economy, attack on black money, less cash economy, digitisation and a blow to terrorism.”

Speaking to presspersons after the RBI annual report highlighted demonetisation collections and implications, Jaitley said direct tax collections had risen after demonetisation. He said personal income tax collections rose by 25 per cent and those dealing in cash were forced to deposit it. He said, “Post demonetisation money has found a rightful owner.”

There has been evidence of a cash squeeze on terror activities in Kashmir and Chhattisgarh. He said, “Terrorists are no longer able to mobilise a large number of stone throwers by distributing currency since their cash streams are now curtailed.”

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