BJP on Monday attacked UPA for leaving the economy in the “worst” crisis” and said it was committed to a simplified tax regime and will, if voted to power, try to hasten implementation of Direct Tax Code and Goods and Services Tax after a consensus among states.
“We are committed to simplifying the tax system - direct and indirect and therefore, we have always said that we will be critically examining the Direct Tax Code and the GST Constitutional Amendments Bill by getting a consensus among the states and try and hasten the process of DTC.
“We are quite confident that these two major tax reforms, if they are carried out by us, it will lead to better tax compliance and our receipts will go up,” BJP leader Yashwant Sinha said, adding a simplified tax regime will lead to higher collection of taxes rather than reduced receipts.
Attacking the Congress-led Government, he charged UPA is leaving an economy which is in “worse crisis than even the earlier crisis in 1991 and 1998”. “It will be a major challenge for the new Government to deal with it when it assumes office,” Sinha said.
He also attacked Finance Minister P Chidambaram saying he has not projected the right picture in maintaining the fiscal deficit at 4.6 per cent and accused him of resorting to “tax terrorism”.
In a sharp retort to Chidambaram’s attack on him who had termed him as the “worst” Finance Minister ever, Sinha, who had been a Finance Minister in NDA Government, said “Chidambaram will have to be reborn again to match my record in the Finance Ministry.”
listing out the “loopholes” in Chidambaram’s projection, he said the expenditure has been savagely cut and termed it as a “mindless” reduction of expenditure and accused the tax administration of becomming “extortionary” by seeking advance tax from tax payers. Attacking Chidambaram, Sinha said “plan expenditure was reduced by Rs 80,000 crore. It is a mindless reduction of the expenditure.
There has been no application of mind. It is as mindless as that done by a Class 7 student.” The former Finance Minister said Chidambaram had transferred Rs 60,000 crore to upstream oil companies and transfer of another Rs 40,000 crore has been postponed to next year.
Sinha also charged Chidambaram with having “milked” public sector undertakings for huge dividends much in excess of what is due and alleged the tax administration became “extortionary” as it put pressure on people in seeking advance tax.
“Chidambaram has been a minister. He indulged in tax terrorism. He literally forced the tax payers to part with taxes which are much in excess of actual demands,” he said. “If I am wrong, let him respond. He has a full Finance Ministry with him,” Sinha said.
On the issue of bringing back black money, Sinha charged the government with being “most reluctant” to give the names of 16-18 persons in a sealed envelope to the Supreme Court.
“I am asking Chidambaram: what is the difficulty in releasing all the names”IJ Sinha said, saying the confidentiality clause in the agreement cited by the government while not releasing names is not applicable.
He said BJP does not buy the theory of the government that black money issue is governed by the double taxation avoidance agreement, saying black money is a criminal offence as per law in India.
Sinha also questioned the government for holding on to 750 names of those having black money abroad for over three years now. “Why as the Government of India not moved in the matter and brought charges against these people...What is the difficulty in releasing the names of all account-holders,” he said.
Questioning the Government’s recent communications to the Swiss authorities with regard to black money after the Supreme Court directive, Sinha said “he has written a strong letter to the Swiss authorities.
When the Government has lost all authority, I don’t think the Swiss Government is going to take it seriously.” He said “this spurt in activity is something which they could have done earlier.”