Reduce indirect taxes in upcoming Budget: P Chidambaram to govt

Government should not cut personal and corporate tax rates but reduce indirect taxes in the upcoming Budget, former finance minister P Chidambaram said today.

Asserting that demonetisation will not kill blackmoney, Chidambaram said that the government should strike at the menace.

The government should not cut personal and corporate tax rates in the Budget to be presented on Wednesday, the senior Congress leader told 'India Today' TV.

"The government should cut indirect taxes in the next Budget," Chidambaram said.

He also said he wants RBI to tell how much money came back into the system.

Questioning the government's demonetisation drive, he said that it has failed to tackle the menace of blackmoney "Demonetisation will not kill blackmoney...where is the link between demonetisation and blackmoney? Please strike at blackmoney but don't connect it to demonetisation,"Chidambaram said.

"If Rs 500 and Rs 1000 notes were villain, how does Rs 2000 notes become hero," he said.

Chidambaram asserted that if he were the Finance Minister, he would not have taken the decision on demonetisation.

Prime Minister Narendra Modi on November 8 had announced withdrawal of high value Rs 500 and Rs 1000 notes.

Chidambaram said after the demonetisation 80 percent of India's SME's have closed down.