Reduce indirect taxes to strike at the menace of black money: P Chidambaram
BT Online January 31, 2017
While speaking to India Today before the annual budget, former finance minister P Chidambaram on Tuesday said that government should not cut personal and corporate tax rates but reduce indirect taxes in the budget.
Chidambaram said that the demonetisation move will not kill black money and that government should strike at the menace by reducing indirect taxes.
Chidambaram also said that he wants RBI to tell how much money came back into the system.
"Demonetisation will not kill black money...where is the link between demonetisation and black money? Please strike at black money but don't connect it to demonetisation," Chidambaram said.
"If Rs 500 and Rs 1000 notes were villain, how does Rs 2000 notes become hero," he added.
Chidambaram asserted that if he were the Finance Minister, he would not have taken the decision on demonetisation.
Prime Minister Narendra Modi on November 8 had announced withdrawal of high value Rs 500 and Rs 1000 notes.
Chidambaram said after the demonetisation 80 per cent of India's SME's have closed down.