NEW DELHI: Finance minister Arun Jaitley held out hope of tax cuts in the future as higher revenue gets generated by a cashless system that will allow transactions to be tracked, following the November 8 demonetisation announcement. "Future transactions would be substantially digital and once they are substantially digital they get caught in the tax net," he told reporters on Tuesday. "Therefore, the future taxation level (collection) would be much higher than what is currently being collected."He said cancelling the old Rs 500 and Rs 1,000 notes will help India move toward a "less-cash" economy and rising digital payments will deliver multiple benefits. The government was rapidly replacing old currency with new notes and significant amounts will be injected into the banking system over the next three weeks."There are economic costs of dealing in cash, there are social costs of dealing in cash. These are the costs which the system has to bear," he said, adding that demonetisation was a system overhaul by the government. "It is our strategy that from high cash-dominated economy we should become a lesscash economy where the amount of paper currency comes down… Cash will still exist and there would be a greater digitisation."The government will collect taxes on money that’s come into the system and can’t be accounted for, he said. Besides, the banking system will have a lot more cash, which will boost its ability to support the economy with low-cost lending."Obviously, with all these advantages, the social cost also on the system will go down. Therefore, the cash used for bribery, for counterfeit currency, for terrorism, for evading taxes itself will go down," he said. Along with other reforms, particularly the proposed goods and services tax (GST) and tying cash spending to PAN declaration, "the levels of corruption in society" will drop, he said. "It is going to bring down cash transaction in society and it's going to bring down levels of evasion as far as taxation is concerned."Jaitley said the government was rapidly replacing old currency with new notes and pressure is easing in the system. "Notwithstanding some transient problem which people have to face, we are now rapidly completing remonetisation exercise," he said. "Everyday, RBI is injecting a large amount of currency into the banking system as part of its remonetisation exercise. Significant amounts are going to be injected in next three weeks which are gradually bringing the pressure down."As more and more of the new currency comes into circulation, ATMs will make notes increasingly available, Jaitley said. The RBI said as on December 10 that banks have issued Rs4.61 lakh crore worth of notes to the public through branches and ATMs. Returned notes amounted to Rs 12.44 lakh crore.