Don’t intend banning P-Notes overnight: Official

New Delhi, Aug 20 (IANS) India has no intention of putting an overnight ban on Participatory Notes and the government is consulting the Reserve Bank of India (RBI) and markets regulator Sebi on the recommendations of the Special Investigation Team (SIT) on black money, a top official said on Thursday.

“Government will not do anything to undermine the growth momentum of the economy. It’s nobody’s intention to ban P-Notes overnight,” Revenue Secretary Shaktikanta Das said at an industry chamber Assocham meeting here.

“The SIT report highlights that there is a need for further improvement in P-Notes regulations,” he said.

The government is in the process of consultation with RBI and Sebi on the SIT recommendations on P-Notes and “a carefully considered decision will be taken”, he added.

Das also said that interactions will be held with foreign investors, financial institutions and other stakeholders before arriving at a decision in the matter.

The Supreme Court-appointed SIT on black money had recommended that the know your client norms for P-Notes be further improved.

Speaking on the proposed goods and services tax (GST), Das said the government is yet to decide on tax rates to be applied under the system.

“All the discussions around GST rates being 25 or 27 percent should not be there. As of now, no decision has been taken,” he said.

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