Is cash transaction tax really required?

BCTT, imposed by P Chidambaram from June 1, 2005 was withdrawn from April 1, 2009

Speculations are doing the rounds that the government may reintroduce much-flayed and blunt instrument of banking cash transaction tax (BCTT) in a different form in the Budget for 2017-18 to catch black money holders and discourage cash transactions.

The tax imposed by former finance minister P Chidambaram from June 1, 2005 was withdrawn from April 1, 2009 on the ground that the tax department had many other instruments to nab those having black money, replacing the need of BCTT.

BCTT was imposed at the rate of 0.1 per cent of cash withdrawal, other than from saving accounts. It was