The International Monetary Fund said on Thursday it supports India’s efforts to fight corruption through the currency control measures announced this week, but stressed taking care to minimize disruptions in the economy. “We support the measures to fight corruption and illicit financial flows in India,” IMF spokesperson Gerry Rice told reporters. Economists and some businesses, especially those involved in cashless payments, have welcomed the “demonetisation” scheme as a vital step towards broadening the formal economy and improving tax compliance. Morgan Stanley hailed the demonetization as a “bold move to curb black money” and bring millions more Indians into the tax regime. As of now, only about 1.6% of India’s 1.25 billion people are paying income tax.
Source: Hindustan Times November 11, 2016 03:26 UTC