The Centre on Wednesday increased the threshold monetary limit to file appeals in tribunals and courts. The threshold limit for filing appeals in tribunals was raised from Rs 10 lakh to Rs 20 lakh, in the High Courts from Rs 20 lakh to Rs 50 lakh, and in the Supreme Court from Rs 25 lakh to Rs 1 crore, PTI reported.

The move to increase the minimum amount under dispute could lead to 29,580 cases being withdrawn from various legal fora. It would also reduce the amount locked up in tax litigation by Rs 5,600 crore, the Centre said.

“In case of the Central Board of Direct Taxes, the withdrawal of 41% of the cases will have a revenue impact of Rs 4,800 crore in absolute terms while in case of the Central Board of Indirect Taxes and Customs, withdrawal of 18% of cases will have a revenue impact of Rs 800 crore,” Interim Finance Minister Piyush Goyal said.

“Small and mid-sized taxpayers will benefit with the increase in threshold limit for filing appeals as they can now focus on doing business rather than litigating in various fora,” Goyal said. “Government trusts the honest tax payers.”

The CBDT will withdraw 34% of cases stuck in tribunals, 48% of those stuck in High Courts and 54% in the Supreme Court. The Central Board of Indirect Taxes and Customs will withdraw 18% of the cases from tribunals, 22% from High courts and 21% from the Supreme Court.