Problem of black money can be tackled by rationalising taxes: Jaitley

Says more people should be brought under the banking net

Finance Minister Arun Jaitley today said the problem of domestic black money can be addressed by rationalising taxes and bringing more people under the banking net besides some other measures.

"The first is you rationalise your rates and have rational rate of taxation which helps you in making sure the people comply," Jaitley said in a lecture at Columbia University.

"The second factor, the nature of the economy is itself changing so more and more banking transaction, payment getaways are a reality. All this is going to incentivise and a lot of economy is going to go through the banking transaction as a result of this," he said.

In addition to this, he said the government has already announced in the budget that it is seriously looking at some category of transactions making PAN card compulsory over a particular threshold limit.

"As far as corporate taxes are concerned, once corporate tax rates go down the exemptions will have to be phased out," he said.

Referring to GST which is stuck in parliament, he said it is the top priority of the government.