Banking transaction tax to have cascading effect: NIPFP

The report also studied the impact of two kinds of demonetisation

A banking transaction tax (BTT) replacing the current tax systems (direct and indirect taxes, except for Customs duty) is not a superior system on all parameters, say economists at the National Institute of Public Finance and Policy (NIPFP) in their assessment of Arthkranti’s proposal which is being made public when the Budget process for 2018-19 is on.

Arthakranti is a Pune-based think tank that claims to have suggested Prime Minister Narendra Modi  demonetise Rs 500 and Rs 1,000 currency notes last year.
 

“It (BTT) fails to achieve the extent of equity that we have in the current system. It promises