Pranab Mukherjee briefs Congress MPs on black money issue

With the opposition planning to raise the black money issue in Parliament next week, Finance Minister Pranab Mukherjee Thursday briefed Congress MPs on different aspects of the matter and steps taken by the government to curb the menace.

In a 45-minute meeting of the Congress Parliamentary Party (CPP), Mukherjee also apprised the members of various international frameworks to access banking information.

"Mukherjee briefed us about the steps being taken by the government to deal with the issue," a Congress member said.

To members' queries on the US getting access to banking information from Switzerland, Mukherjee told them that India also had got access to such information from other countries.

He also told Congress members that the drive against black money would show results over the next five years.

Mukherjee said India was playing an important role at the international fora in highlighting the importance of exchange of banking information and sharing of past data.

Government has adopted a five-pronged strategy including negotiation and re-negotiation of its double taxation avoidance agreements with different countries.

The strategy includes joining the global campaign against black money and creation of a legislative and institutional framework to deal with illicit money.

The government was also focusing on providing better taxpayer services, a reduction in the cost of compliance and focused enforcement in the case of high networth individuals.

The progressive personal income tax policy has resulted in a ten-fold increase in revenue collections, which went up from USD 8.62 billion in 1996-97 to USD 87 billion in 2010-11, Mukherjee told the members.