“Reforms are Disruptive”: Jaitley Defends Note Ban on Facebook

Finance Minister Arun Jaitley’s Facebook post comes two months after the demonetisation announcement.

Two months after demonetisation was announced on 8 November 2016, Finance Minister wrote a Facebook post on Sunday, analysing the rationale and the impact behind the decision.

1. “Demonetisation Was a Step Against Black Money”

2. “Tax Evasion Had Become the Norm”

Jaitley lamented that tax evasion had become the new ‘normal’ in India, and said that the expenditure for development has been compromised because of tax non-compliances.

3. “Cash is the Medium Which Funds Corruption & Bribery”

4. “Currency Squeeze During Remonetisation Will Have a Transient Impact on Economy”

Lauding PM Modi’s decision to implement demonetisation, Jaitley asserted that the black money deposited in the banks cannot be seen as “legitimate cash.”

He further said that the amendment to the Income Tax Act provides that black money “voluntarily declared or if involuntarily detected, would be liable for differential and high rates of taxation and penalty”.

5. “In the Long Run, GDP Will Be Bigger and Cleaner”

6. “Congress sided with black money friendly status quo”

7. “Rahul Gandhi Only Wants to Disrupt Parliament”