After demonetization there was a lot of talk of the country moving on to digital transaction. However, the digital mode of payment did not pick up as expected. Now it is understood that the government is working on a proposal to provide incentive for digital transactions. The digital push reportedly includes incentives like discount over MRP for the consumer. The discount however would be capped at Rs 100. For the business class the incentive could be by way of cashback based on quantum of turnover through digital mode or tax credit on basis of turnover obtained through digital mode or even allowing offset GST liability up to a threshold. These incentives could give a big boost to the digital mode of transaction. But it remains to be seen how the small time traders like vegetable and fruit vendors will respond to the incentive proposed for digital transactions. People have still not been able to switch over to digital mode of payment and hopefully these new incentives which have been proposed will give a surge to digital transaction as and when implemented.
ADELMO FERNANDES, Vasco
