Rajasthan Government Makes PoS and Micro ATMs Tax Free to Ease Cash Flow


The demonetization brunt has stirred up a new storm in India, putting economy into a vulnerable condition. It’s more than 20 days since the centre has implemented a ban on Rs. 1000 and Rs. 500 notes. Even after a fortnight, state ATMs are dry and banks have long queues with agitated users outside. Demonetisation, which was initially implemented by PM Modi to promote cashless, transparent society may backfire on the government if the currency crisis persists for long.

Amidst political hostilities and public hullabaloo, India’s biggest state Rajasthan has come up with ways to promote cashless transactions in an attempt to support PM in his fight against black money.


CM Raje Removes Vat on PoS and Micro ATMs to Promote Cashless Transactions

PoS (Manufacturing Point of Sale) machines are in great demand since merchants are compelled to swipe credit and debit cards in the light of latest demonetisation rules. Earlier, the government charged additional taxes (VAT), every time a card was swiped at retail outlets. Nevertheless, considering that Rajasthan is running out of money, state CM Vasundhara Raje has decided to make cashless transactions VAT-free to encourage card swiping.

Accordingly, digital payments made via PoS machines and micro ATMs will be tax-free. The idea is to promote the manufacturing and distribution of these machines. Government will take appropriate measures to setup manufacturing and distribution sectors for these machines. This move will benefit all Bhamashah card holders and Co-branded card holders in state.

This will also encourage small shopkeepers and manufacturers to purchase card swiping machines for their outlets.

It’s to be noted that 14.5% VAT was imposed on cashless transactions earlier. Now that this additional charge has been eliminated, both consumers and shopkeepers can freely use micro ATMs and PoS to purchase basic necessities, despite currency crises in country. This will ease the brunt of demonetization to some extent.


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