SME Times is powered by   
Search News
Just in:   • Textile traders extend 3-day strike against GST  • Key equity market indices open higher  • LT Foods sets up plant in Europe to popularise 'Daawat' rice  • Vodafone India partners with HMD Global for Nokia smartphones  • Fitch Ratings maintains negative outlook on banking sector 
Last updated: 09 May, 2017  

unlogo.THMB.jpg 'Demonetisation did not impede future black money flows'

black-money.jpg
   Top Stories
» No deferring GST launch, clears FM Arun Jaitley
» Cabinet gives in-principle nod to divest bleeding Air India
» Opposition parties may skip GST launch on┬áJune 30
» Govt notifies mandatory linking of Aadhaar with PAN
» 'Incubators for startups in every parliamentary constituency'
SME Times News Bureau | 09 May, 2017
The Indian government's demonetisation measures did not impede future black money flows in new denominations, a UN report said on Monday.

According to UN Economic and Social Survey of Asia and the Pacific 2017, complementary measures to demonetisation would be required to target all forms of undeclared wealth and assets.

"Broader structural reforms which could also contribute to enhanced transparency include: the implementation of a goods and services tax; voluntary disclosure of income scheme; and tracking of high-value transactions through taxpayer identification numbers," it said.

"Other measures, such as reforming the real estate registration process to ensure transparency, are being discussed."

As per the report, the disruption caused by demonetisation had "greater and longer-lasting" impacts for lower-income individuals, households and businesses that had difficulty insulating themselves against the shock.

"Rural incomes and consumption were affected due to a decline in prices for agricultural products (although again, this was not reflected in the national accounts data which measure agriculture in terms of quantity)," the report said.

"In the medium-term, the currency initiative is expected to bring more economic activities into the formal sector and spur digitisation of financial transactions, helping to broaden the tax base and secure the fiscal space needed for public social and infrastructure expenditures."

The report pointed out that "one-off" currency measure in effect transferred lost black money to the central government through unclaimed or unexchanged notes.

"Preliminary estimates suggested a 97 per cent recovery of notes, which would imply a 3.16 per cent increase in fiscal revenues for the government," the report read.

On November 8, 2016, exactly six-months ago Prime Minister Narendra Modi announced that the Reserve Bank of India (RBI) would withdraw India's two largest currency denominations -- Rs 500 and Rs 1,000 -- from circulation.

The two bank note denominations which were withdrawn represented more than 86 per cent of the cash in circulation. 
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
65.15
63.50
UK Pound
83.40
80.60
Euro
73.45
70.95
Japanese Yen 59.75 57.70
As on 29 Jun, 2017
  Daily Poll
Should Govt tax farm income above certain level?
 Yes
 No
 Can't say
  Commented Stories
» GST transition for SMEs(24)
» Starting an import export business: Basic guide for beginners(13)
» SMEs, start-ups to benefit from GST: Vastada Consulting(2)
» Poor state of state finances(2)
» After note ban now SMEs get scared of GST(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter