Union finance minister Arun Jaitley on Thursday said the impact of demonetisation was clearly visible with tax collection figures seeing double-digit growth.
“The impact of demonetisation on tax revenue and collection is already visible. There has been a 26.2% increase in central indirect tax collection till November 30,” he said at a press conference here, adding that till December 19, direct tax collection increase has been to the extent of 14.4% against a growth rate of only 8.3% previous year.
Till December 19, the net increase in direct taxes has been 13.6% after factoring in the refunds, he said.
“In the central indirect taxes there is an increase of 26.2% till November 30. Excise duty is up by 43.5%, service tax by 25.7% and custom duties up by 5.6%,” Jaitley said. “Notwithstanding the critics, it is a very significant increase in all indirect taxes till November 30.”
Life insurance, tourism, petroleum consumption, flow of mutual fund investment have all increased during this period, the finance minister said.
Jaitley said demonetisation had brought a large part of money into the formal banking system which had increased the ability of the banks to lend.
On the liquidity situation in the markets, he said a major part of the demonetised currency had been replaced with new notes and circulation of Rs 500 had increased.