Amid protests by opposition parties over demonetization and GST, Finance Minister Arun Jaitley said today that there was significant ethical rationale for taking decision such as demonetization and GST (Goods and Services Tax). Jaitley said that both demonetization and GST will prove to be a game changer, as they will help promote compliance and digitization. Jaitley said that it would be possible since both demonetization and GST will make it difficult for corrupt people to make cash transactions. Jaitley also said the benefits have already started to appear, as significant expansion has been noticed in direct and indirect taxes. Jaitley was speaking at the Delhi Economics Conclave organized by the Finance Ministry.
Jaitley said that demonetization has hit black money hoarders hard and it was necessary since a large number of transactions were taking place outside the system. He said that everyone may have faced problems during demonetization, but the decision will have several benefits in the long run. Jaitley also talked about the shell companies, which had become a norm for people trying to hoard black money. He said that shell firms were being utilized by corrupt civil servants, businesses, and politicians to stash black money. “The sooner this business of routing money through shell companies collapses, the better it is going to be for the formal economy,” Jaitley said.