Real demonetisation impact after four quarters: BJP

Bharatiya Janata Party’s (BJP) national spokesperson Nalin Kohli on Tuesday said the “real impact” of demonetisation can be judged on the basis of data only after four quarters.

“To judge whether the demonetisation scheme has succeeded or not, you have to give four quarters. We must analyse the data over four quarters before criticising the scheme.

“We need this much time to assess the real impact of demonetisation in terms of tax collection and cash circulation,” Kohli said.

“But, I stand by what Prime Minister (Narendra) Modi had said… 50 days will be a period of pain that will end in December-end. By this time, a decent part of money would come into circulation,” he said.

“Those who want to form opinion on January 1 (without waiting for four quarters) will be doing so without understanding the totality,” Kohli said at an interactive session here.

In the switch-over period, there are some advantages and disadvantages, he said.

“I am convinced that it (demonetisation scheme) will succeed and it will not fail,” Kohli said.

Asked, how come people were caught with huge amounts of new notes while many were standing in the queues outside banks and ATMs, he said: “It is happening because of corruption and nexus… anti-fraud systems are analysing it and taking action against them.”

On the implementation of Goods & Services Tax (GST), Kohli said: “The GST will roll out on time… the government is targeting to roll out the new indirect tax system by April 1. It will eliminate chances of leakages.”

Responding to queries on EPFO interest rate cut to 8.65 per cent, Kohli said: “One can’t see just the interest rest aspect of it.”