The lok Sabha on Tuesday passed the Bill that seeks imposition of tax, penalty and cess of 50 per cent on deposit of unaccounted scrapped high value currency notes post demonetisation. The Bill was passed without any debate amid fierce slogan shouting by the Opposition. Finance Minister Arun Jaitley said the Taxation laws (2nd Amendment) Bill, 2016 was brought after it came to the Government’s notice that some people were trying to illegally exchange the demonetised Rs 1,000 and Rs 500 currency notes.
He said as per the proposed amendment, those caught illegally converting money will have to cough up 60 per cent tax plus penalties, which will come to 85 per cent. Those who disclose black money to banks will have to pay 50 per cent tax, including surcharge and penalty. While they will get back 25 per cent immediately, the rest 25 per cent will be returned after four years.
“It will give means to the Government of India to run schemes like Garib Kalyan Kosh... I urge the House to accept the amendments,” he said. Opposition leaders shouted “this is black day in democracy,” while Speaker Sumitra Mahajan started proceedings to pass the Bill.
Mahajan said since the Bill is of urgent public importance, it has to be passed immediately. Though she wanted a debate, she said, “It is impossible” because of the behaviour of the Opposition members. She also disallowed some amendments moved by Opposition members as they required approval of the President which could not be obtained.
Two amendments by N K Premchandran (RSP) and B Mahtab (BJD) were allowed. While Premchandran refused to move the amendment as he was shouting slogans, Mahtab’s was negated by a voice vote.The Bill was passed by a voice vote amid din.
Terming the passage of taxation Bill amid din without debate as “black day” in the lok Sabha, Opposition parties accused the government of being “undemocratic and dictatorial” and hinted at approaching the President on the issue. The Government, however, blamed the Opposition for not participating in the debate and said it was “tragic” that the Bill had to be passed in the din.
Congress leader Mallikarjun Kharge said, “We want that Income Tax Amendment Act should come through the rules. The amendments proposed by the Opposition MPs and leaders should also be kept in mind before taking the assent from the President.”
“I had written to the Speaker (lok Sabha) in the morning that this Bill should not be allowed to be passed in the din. But what we apprehended happened. In spite of all of our protest, this Bill was passed. The very purpose of the Bill was sort of defeated,” said Saugata Roy TMC MP.
CPI(M) leader Mohammad Salim said that it is a “black day” in the history of lok Sabha and an “undeclared emergency”. It is not a fight against black money but “rewarding black money hoarders”, he alleged. “The way the Government is treating Parliament and willingly or unwillingly the Chair is allowing this to happen, this will be written in the history as the black day in Parliament,” Salim said.
Union Minister Ravi Shankar Prasad dismissed the Opposition’s charge. “It is written in the Constitution what is a money Bill or not. Those Bills which the Speaker certifies are considered money Bill.
“As far as my knowledge about law is concerned, amendments in relation to Income Tax are a money Bill. Where is the scope for discussion on thisIJ” he asked. He said the money which will come through the amendment to the Income Tax Act will be spend on villages, poor people, irrigation, roads and houses for the poor. “