The Hindu : National : Finance Bill moved in Lok Sabha

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Friday, Apr 29, 2005

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National

Finance Bill moved in Lok Sabha

Special Correspondent

No change in budget proposals for 2005-06

NEW DELHI: With the passage of the demands for grants totalling Rs. 11,52,521.58 crores for the Central Ministries and Departments on Wednesday without debate, Union Finance Minister P. Chidambaram moved the Finance Bill 2005 in the Lok Sabha on Thursday. Mr. Chidambaram, however, did not announce any change in his budget proposals for 2005-06. It is now likely that he will move amendments to the two "controversial" proposals — the bank cash withdrawal tax and the Fringe Benefits Tax (FBT) — on Monday, when the clause-by-clause amendments are taken up for approval.

While the Opposition members stayed away following the NDA's boycott call, the response of the UPA coalition partners to the two proposals was mixed.

Initiating the discussions on the Bill, which has been allotted about 10 hours over three days, Sandeep Dikshit (Congress) supported the bank cash withdrawal tax but favoured a hike in the ceiling to Rs. 35,000 from the proposed Rs. 10,000. As for the FBT, he felt it was a bold move and India Inc. should fall in line as a 30 per cent tax was payable by corporates on similar benefits in many countries.

However, the CPI (M) member, Tarit Baran Topdar, said the ceiling for applicability of the withdrawal tax should be retained at Rs. 10,000. Although he favoured the FBT, he said there were other ways of mopping up black money if the Government was serious about its task. In its present form, the FBT would fail to achieve the desired results.

Citing an instance, he said Mr. Chidambaram's "dream budget" in 1996 had a voluntary disclosure scheme but the people who availed themselves of the benefit were not even income tax payees.

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