The central government should have focussed on Income Tax than on demonetisation, Housing Development Finance Corporation Ltd (HDFC) Chairman Deepak S Parekh said in Chennai on Monday. Participating in a discussion held in Chennai, Parekh, noting the lack of clarity in income and corporate taxation, said the central government must have concentrated on Income Tax laws as it would have been more fruitful in repairing the economy instead of demonetising 500/1,000 rupee notes.
The event was held as a part of 2nd KS Narayanan Oration-2017. However Parekh said the objective of demonetisation is laudable but its success is anybody’s guess. He added that Indian economy would grow inspite of the several issues. According to him, the four drivers of growth are government investment, private consumption, exports and private spending. He said the reduction in interest rates will increase public investment in equity through mutual funds.