Service tax on debit and credit card transactions of up to Rs 2,000 has been waived, as part of the Centre’s bid to promote cashless payments, PTI reported. Union Finance Minister Arun Jaitley will table a notification in Parliament on Thursday to amend the service tax notification of June 2012 and include the exemption.

The government has been trying to push citizens to opt for digital payment transactions since it demonetised Rs 500 and Rs 1,000 notes on November 8. Prime Minister Narendra Modi has been campaigning vigorously for a “cashless economy” since he announced the demonetisation decision. During his monthly radio address to the nation “Mann ki Baat” on November 27, he had said, “Take a pledge you will be part of a cashless economy.” On November 30, canteens on the Parliament premises went the cashless way because of the cash crunch India has been facing since the high-value notes were scrapped.

Currently, services provided by organisations like United Nations and other international outfits are exempted from tax. Besides, no tax is levied on testing of new drugs, and services provided by general insurance business and sports bodies, according to PTI.