Taxing cash

CMs' panel suggestions on digital economy are misguided

Shortly before the Union Budget is to be presented, a panel of chief ministers, led by Andhra Pradesh Chief Minister N Chandrababu Naidu, has presented an interim report to the Centre suggesting various measures relating to the use of cash in India. The panel was constituted by Prime Minister Narendra Modi shortly after demonetisation was introduced last year, and also included the chief ministers of Odisha, Madhya Pradesh and Maharashtra. Among its recommendations is that the Union Budget should include a banking cash transaction tax, or BCTT, on large transactions — of Rs 50,000 or above. Other recommendations from the