‘Govt to work with RBI on bank privatisation’
Govt did not consider levying a Covid cess as it did not want to burden the taxpayer, the Union finance minister said
MUMBAI: In her address to business leaders, chartered accountants and tax professionals in Mumbai on Sunday, Union finance minister Nirmala Sitharaman said that the government will work with the Reserve Bank of India for execution of the bank privatisation plan. She said that the Narendra Modi-led Bharatiya Janata Party (BJP) government did not think of levying a Covid cess even for a day.
“We don’t know how these reports came out but the prime minister was clear that we do not want to impose any burden on the taxpayer. There was no question of a Covid cess,” Sitharaman said.
Ahead of the Union budget, there were talks that the Centre may introduce a Covid cess on individual taxpayers. In the budget, Sitharaman did not announce any change in income tax slabs for individuals taxpayers, but made some changes in the rules for income tax ease compliance. “The honest taxpayer need not worry at all. Today, we have big data and technology to deal with those few who try to play with the system,” she said.
Sitharaman also highlighted the government’s disinvestment policy. “The opposition says that we are selling the family’s silverware. We are not doing that. We are strengthening it further for India’s growing aspirations,” she said.
Commenting on Mumbai’s position as the financial capital of the country, Sitharaman said, “Mumbai is a city which understands the budget. In fact, talking about the budget in Mumbai is equivalent to talking in Parliament.”
“I want to assure the city and every taxpayer, that we value each and every rupee paid by them and it will be used in the right, meaningful way,” she said.
Commenting on the Union budget, Sitharaman said it had set the path for the coming decade. “We have been carrying the socialist baggage for a long time. The license raj restricted industries to flourish. Till date, we talk about the 1991 liberalisation, which was again done on compulsion, but there were several steps that had to be followed later, which was not done.”
The government will work with the Reserve Bank of India (RBI) to execute the bank privatisation plan announced in the budget, Sitharaman told reporters at a press conference. The Centre does not plan to form any bank investment company to house the government’s bank holdings, she said.
In the Union budget, the privatisation of two banks was announced as part of the Centre’s disinvestment plan. However, bank unions have opposed the move. “The details are being worked out. I have made the announcement, but we are working together with the RBI,” Sitharaman said, when asked about the proposal. She, however, declined to comment on specific details about which will be the candidate chosen for privatisation. “We will let you know when the government is ready to announce,” she answered when asked about the details.