Taxes, both direct and indirect, may become "more reasonable...at some stage", Finance Minister Arun Jaitely told media on Tuesday.
As he was urging the Congress to rise above party lines and join the debate on demonetisation, Jaitely reasoned that since future transactions would be substantially digital, they would come in the tax net.
The tax receipts would be much higher than what is currently being collected, and this, in his view, would enable to the government to make taxes more reasonable.
The finance minister said that with more cash in the banking system, it's ability to support the economy would be much higher.
He spelt out other advantages of going cashless, and said agencies were keeping an eye on "unscrupulous elements including some in the banking system and some others who have been trying to subvert the system and accumulating large amount of cash unlawfully".
