PANAJI
In the last one week, a number of government officials have spoken to manufacturers, distributors and even small shopkeepers to convince them to use non-cash modes of payments like swipe machines, payment apps and a universal payment interface.
This move, appreciable though it is, ignores the fact that payments at most government offices continue to be in cash. This is why financial experts think that it is very important for government offices to go cash-less for the State to become a cash-less society by December 31, as envisioned by the government.
A chartered accountant said, “Whenever you go to government departments, whether municipality, sub-registrar, labour department, PDA, TCP, water department or power department, all kinds of payments are made in cash.”
Government departments don’t accept cheques for the fear that they will have to run from pillar to post in the event the cheque bounces. That leaves people with no other option but to make payments in cash.
A financial planner said, “When you buy land, you have to get sale deed in your name. You go to sub-registar’s office and he will tell you to get a challan. Then, you will go to your bank to withdraw cash, which you will take State Bank of India’s branch to deposit money and it will give you a challan. Then, you will take this challan to sub-registrar’s office. Overall, this process takes 1-2 days. All this hassle can be avoided if sub-registrar’s office has modes of non-cash payment.”
The whole issue of non-cash payments is to ensure that unaccounted money gets into the banking system by blocking cash payments. Interestingly, in Goa, excise duty and commercial taxes can be paid online.
But still, a number of people don’t make these payments online. Meanwhile, service tax is payable only online leaving no scope for cash payments. Value-added-tax (VAT) can also be paid online, but a lot of people still pay it in cash.
Considering this, financial experts lauded government’s drive to make Goa cash-less, as it will result in more businessmen paying tax online.
But, despite government’s best intentions, experts feel that making Goa a 100% cash-less economy is a far-fetched dream. A source informed, “People say that Sweden is a cash-less economy. But, in reality, it is only 78-80% cashless. For close to 20% payments, people use cash even in Sweden.”
Whether Goa will become a 100% cash-less society remains to be seen, but it would really help if non-cash modes of payment are encouraged at government departments.
