With the Opposition demanding reversal of several tax proposals in the Union Budget, Finance Minister Nirmala Sitharaman on Thursday said the proposals are aimed at improving the ease of living and reducing pain of the citizens.
The Minister did not relax the tax proposals with regards to Foreign Portfolio Investors, TDS on cash withdrawal above Rs 1 crore from banks and hike in customs duty on newsprint as was being demanded by the Opposition.
While replying to discussion on the Finance Bill, 2019, Sitharaman said Budget proposals will promote Make in India and digital payment. The Bill was later passed by the Lower House by voice vote.
With regard to simplification of tax laws, the Ministry has already set up a task force to finalise a new Direct Tax Code (DTC), she said.
The Minister, however, did not say anything on proposal to increase customs duty to 10 per cent on newsprint. Several members have asked the Government to reduce hike in customs duty on newsprint saying it would badly hurt the small and medium newspapers.
Referring to imposition of 2 per cent TDS on cash withdrawal beyond Rs 1 crore, she said the tax could be adjusted against the liability of the assessees and hence there will be no additional burden on them.
On the proposal to hike tax liability on individuals earning more than Rs 2 crore, she said it will not impact FPIs provided they organised themselves as company.
Charging that budget deficits are underestimated and “Fiscal honesty” is being undermined, the Congress on Thursday said in the Lok Sabha that several amendments to laws that are not related to finance are being proposed through the Finance Bill and there was no road map for achieving the high-sounding targets.
Initiating the discussion on the Finance Bill, 2019, Leader of Congress in the Lok Sabha Adhir Ranjan Chowdhury said there is no roadmap for achieving the target of USD 5 trillion economy and asserted that it was the successive congress regimes which built up Indian economy brick-by-brick after it had virtually bled under the colonial rule. “You should not see the past as a cancelled cheque... You should look at from where we started,” he said and remarked that before Independence, the country’s growth was less than one per cent.
Chowdhury also attacked BJP for making high-sounding promises even as unemployment rate, he said was the highest in the country. “The country is gasping for employment... (the employment figures) are heart wrenching,” Chowdhury said, emphasizing the need for concerted efforts to build the economy.
The Congress leader said “Fiscal honesty” is being undermined and deficits are underplayed.
Referring to mismatch in certain figures mentioned in the Economic Survey and the Budget, Chowdhury said the sanctity of regular Budget numbers have been called into question.
Before Chowdhury spoke, NK Pemchandran (RSP) pointed out that the budget which is mainly the tax statement of the government has included several issues not related to the finance bill. In this respect he quoted the rulings of previous speakers including that of Sumitra Mahajan.
Premachandran objected to the Finance Bill having the provisions to amend a number of laws, including Benami Act, Sebi Act and PMLA Act, and urged Speaker Om Birla to disallow it. A Finance Bill can only have taxation proposals, Premachandran said, soon after the finance minister stood up to move the bill for consideration and passage. He also accused the Government of bypassing Parliament to avoid discussion and scrutiny for amending existing laws by including them in the bill.
Sitharaman said rules and constitutional provisions cited by Premchandran do not rule out non-taxation proposals for inclusion in the Finance Bill but only say that it should be done only when imperative.