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Rajya Sabha
An amount of Rs.583 crore has been collected as Fringe Benefit Tax and an amount of Rs.20 crore has been collected as Banking Cash Transaction Tax for the first quarter of the current financial year.
The primary objective of Banking Cash Transaction Tax is to check tax-evasion and discourage cash transactions rather than to generate revenues. Moreover, Banking Cash Transaction Tax came into effect on 1st of June, 2005 and so the collections of the first quarter actually represent the collections of only one month. In view of this, the Government does not at present propose to withdraw Banking Cash Transaction tax.
This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question raised by Shri Murli Deora in Rajya Sabha today.
BSC/BY/GN-301/05
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