Hours after GST launch, Modi says new tax reform will weed out black money

New Delhi: Prime Minister Narendra Modi on Saturday said Goods and Services Tax (GST) would weed out black money from the country, hours after the tax reform was launched in the Central Hall of Parliament.  

Modi was launching the new chartered accountancy curriculum on Foundation Day of Institute of Chartered Accountants of India in Delhi.

Praising the demonetisation move, PM said that the government's initiative to check black money has reaped positive results, and that is visible from the latest records of Swiss banks, where Indians' money has dipped to record low.

"Swiss Bank has stated that there has been a 45% drop in the deposit by Indians, the lowest ever in years," he said.

Surprisingly, the amount had risen sharply earlier in 2013, Modi said, referring to a period when the Congress-led UPA regime was in power.

Asserting that a country where a select few loot, cannot scale new heights, Modi further said that these ‘few’ do not want the nation to grow. 

The Prime Minister warned that those with black money will face more difficulties when Switzerland begins automatic information exchange with India in 2 yrs. He also warned the nation that those with black money will not be spared.

Addressing chartered accountants on the foundation day of the ICAI (Institute of Chartered Accountants in India), Modi also said CAs should take a pledge to bring people in the tax bracket rather than boasting about the number of clients they have saved from paying taxes.

Modi also said that Chartered Accountants have a big responsibility to ensure that society's economic status remains in good health.

"Just like doctors don't want people to be ill to get more business, CAs too need to safeguard society's economic health," Modi said.

Talking on the advantages of demonetisation, Modi said that post demonetisation, data mining showed over 3 lakh registered companies indulged in suspected dealings. 

Govt has cancelled registration of over 1 lakh companies and more than 37,000 shell firms have been identified for strong action.

The Prime Minister said that the government was not concerned about political implications but was more committed towards taking tough action against firms helping in hiding black money. 

Modi said his government along with Swachh Bharat Abhiyan (Clean India), is also cleaning India's economy and it has taken tough stand against those who have looted the nation.

In a strong message to the CA community, he asked as to why action has only been taken against just 25 of them for irregularities, while more than 1,400 cases have been pending for many years.