A high-level panel on Tuesday recommended a slew of measures to promote digital payments in its interim report, including levy of tax on withdrawal of Rs 50,000 and above from banks.
The committee of chief ministers on digital payments, led by Andhra Pradesh’s Chandrababu Naidu, has also recommended abolition of merchant discount rate (MDR) to make digital payments cheaper than cash.
The committee submitted its interim report to prime minister Narendra Modi on Tuesday. Financial Chronicle first broke the story `ATM, high-value cash withdrawals to attract handling charge’, on December 22.
The panel has also suggested that no retrospective tax be imposed on merchants doing digital transactions.
The panel has also suggested subsidy payout of Rs 1,000 for smart phone purchases to non-income tax asseesses and small merchants.
The committee has also suggested that all government sections, including insurance, educational institutes, fertilisers, public distribution system and petroleum be asked to switch to digital payment.
It has also proposed extending tax incentives to encourage domestic production of equipment like micro ATMs and biometric sensors, which form part of essential infrastructure for digital payments.
The panel was mandated after demonetisation to suggest measures for all sections of the population to migrate to digital payments. It was also asked to recommend measures to leapfrog into the advanced digital payment systems of global standards.
The committee of chief ministers on digital payments, led by Andhra Pradesh’s Chandrababu Naidu, has also recommended abolition of merchant discount rate (MDR) to make digital payments cheaper than cash.
The committee submitted its interim report to prime minister Narendra Modi on Tuesday. Financial Chronicle first broke the story `ATM, high-value cash withdrawals to attract handling charge’, on December 22.
The panel has also suggested that no retrospective tax be imposed on merchants doing digital transactions.
The panel has also suggested subsidy payout of Rs 1,000 for smart phone purchases to non-income tax asseesses and small merchants.
The committee has also suggested that all government sections, including insurance, educational institutes, fertilisers, public distribution system and petroleum be asked to switch to digital payment.
It has also proposed extending tax incentives to encourage domestic production of equipment like micro ATMs and biometric sensors, which form part of essential infrastructure for digital payments.
The panel was mandated after demonetisation to suggest measures for all sections of the population to migrate to digital payments. It was also asked to recommend measures to leapfrog into the advanced digital payment systems of global standards.
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