The lok Sabha on Tuesday approved the Finance Bill and Demands for Grants of different Ministries in the absence of Opposition parties and without a debate. The Railway Budget also got approved in a similar manner. Opposition parties staged a walkout, expressing their reservation to be party to passage of the Finance Bill and the Railway Budget of the Government, which is involved in several scams.
Members of the Trinamool Congress and the left parties protested after Speaker Meira Kumar announced that the money bills would be passed without discussion, as decided by leaders of parties at a meeting of the Business Advisory Committee on Monday.
In between the Speaker allowed leaders of the JD(U), CPI, CPI(M), AIADMK, DMK, BJD, TDP and Trinamool Congress to have their say after which she directed them to walk out of the House.
Earlier, leader of the Opposition in the lok Shaba Sushma Swaraj made a brief but impressive speech, spelling out the reason for BJP’s boycott of Parliament. After she led BJP MPs’ walkout and the Speaker observed that financial business would be transacted without a debate, Trinamool Congress MP Saugata Roy raised a point of order.
Roy contended that Parliament cannot pass Finance Bill or other money bills without discussion “otherwise it will create a precedent for posterity”. The Speaker then referred to earlier instances when money bills were passed without discussion.
CPI’s Gurudas Dasgupta, CPM’s Basudeb Acharia, JD(U)’s Sharad Yadav, BJD’s B Mahtab, TDP’s Nama Nageshwara Rao, AIADMK’s M Thambidurai and DMK’s TR Baalu made brief references to the reason for not participating in the debate and walked out.
While left, BJD and AIADMK members left the House to protest against passage of important bills without discussion, DMK followed suit demanding removal of the JPC chief PC Chacko.
When the Railway Budget was taken up, Trinamool Congress leader Sudip Bandopadhyay alleged that the Centre has discriminated against West Bengal by not giving funds to projects for the State. His party MPs walked out later.
After the walkout, Speaker Meira Kumar said the passage of crucial bills without debate was being done in a “very difficult condition” and it was “immensely painful” for her.
Making a brief statement while moving the Finance Bill for voting, Finance Minister P Chidambaram introduced an amendment on the issue of wealth tax in view of misapprehensions as to whether it will apply to agriculture land.
“There was apprehension that wealth tax was being imposed on agricultural land. let me make it absolutely clear that the policy of the UPA Government is not to impose wealth tax on agriculture land,” he said. The passage of the General and Railway budgets was rushed through as the guillotine had to be applied to meet the constitutional requirements.
As regards other changes in the Finance Bill, Chidambaram said the Government is seeking authorisation to raise customs duty on cashew to 70 per cent with a view to protecting the domestic industry. Referring to the proposal to impose Commodities Transaction Tax (CTT) on non-agriculture items, he said, “Trading in commodity derivatives will no longer be considered as a speculative transaction.” The Minister also announced changes in the tax laws to attract foreign investments.
He clarified that PAN requirement and consequently higher withholding tax of 20 per cent will not apply to interest paid to non-resident in respect of investment in long-term infrastructure bonds.
On the proposal to impose Tax Deducted at Source (TDS) of one per cent on transfer of immovable property, Chidambaram said the person requiring tax deduction would not be required to obtain TAN (Tax Deduction and Collection Account Number).
Chidambaram said he had rectified the provisions relating to one per cent tax on cash sale of bullion or jewellery to prevent misuse of the provisions of the I-T Act. Referring to demand for removal of higher duty on SUVs, Chidambaram said the proposed increase is very small.