Finance Minister P Chidambaram on Monday indicated that though his Interim Budget speech will be short, it will contain proposals related to tinkering with excise duties and service tax rates. He even stated that it could contain an outline for the future.
Speaking to mediapersons in the presence of Parliamentary Affairs Minister Kamal Nath and Information Broadcasting Minister Manish Tewari, on the eve of the Winter Session of Parliament, which is set to begin from February 5, the Finance Minister indicated that though the Government can’t suggest amendments in the Income Tax Act or the Customs Act, any proposal short of amending a law can be made. “We can also outline vision for the future,” he added.
Replying to questions, Chidambaram said that whatever changes are required to be made to excise rates or service tax rates without an amendment to the law “are being made and will be made”. At the same time he hoped that there is a discussion on the Vote on Account in Parliament, and added that it would be disappointing if it does not happen.
Remarking in a lighter vein on his proposed speech on the Interim Budget, the Finance Minister said that in 2004 Jaswant Singh (the then Finance Minister in the NDA Government) had made a 12-page speech. In 2009, Pranab Mukherjee made an 18-page speech. “So, I have two numbers to choose from between 12 to 18. We can make any proposal short of amending any law,” he quipped.
Regarding the pending financial bills, Chidambaram said that there is no consensus among States on the Goods and Services Tax (GST). In view of heavy agenda before the last session of 15th lok Sabha, which will have only 12 sittings, the Government is not likely to push the Direct Taxes Code (DTC), which seeks to replace the over 50-year-old Income Tax Act, 1961. The GST Bill, which has been pending for long, aims at overhauling the indirect taxes regime by subsuming various levies such as excise and service tax.