Ashutosh Pande, founder & Chief Innovation officer of PaySe shares his expectation from Union Budget 2016
The government said in one of its communications to the Payment Council of India that merchants with more than 50% of their transactions done digitally could get a tax rebate or a 1-2% reduction in value-added tax on all electronic transactions. Consumers could get some income tax rebates if they showed a certain portion of their net expenses was incurred digitally. A similar initiative was implemented in South Korea and helped transform a predominantly cash nation. (Also Read- Union Budget 2016: Here’s what Arun Jailey should do to boost power sector)
Success of the initiative in Korea was driven by the willingness of the government to allow various payment instruments including open, semi-closed and closed pre-paid instruments to be within the gambit of digital payment. A similar policy will help the merchants and consumers overcome the initial inertia.
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