For changes in I-T laws, Govt moves taxation bill in LS
OPPOSITION MPS EXPRESSED CONCERN OVER THE HEALTH OF THE ECONOMY AND ASKED THE CENTRE TO TAKE STEPS RATHER THAN “CLUTCHING AT STRAWS” TO DEAL WITH THE PROBLEM
NEW DELHI : The Centre in the Lok Sabha on Monday moved the Taxation Laws (Amendment) Bill 2019 for its passage, seeking changes in the Income Tax law aimed at lowering tax rate options to domestic companies to promote growth and investment and attract fresh investment in the manufacturing sector.
The Bill seeking amendment to the Income-Tax Act, 1961 and to amend the Finance (No.2) Act, 2019 was moved in the House by finance minister Nirmala Sitharaman. The Taxation Laws (Amendment) Ordinance, 2019 was promulgated on September 20 to amend the IT Act and the Finance (No. 2) Act, 2019. It provides lower tax rate options to domestic companies to promote growth and investment and attract fresh investment in the manufacturing sector.
The Bill was introduced in the House on November 25. Some provisions of the Bill are different from those of the Ordinance.
During the discussion on the Taxation Law Amendment Bill and a statutory resolution disapproving the ordinance on the same legislation, Lok Sabha members from various opposition parties expressed concern over the health of the economy and asked the government to take effective steps rather than “clutching at straws” to deal with the problem.
Congress leader Adhir Ranjan Chowdhury asked the BJP leadership to seek advice from former Prime Minister Manmohan Singh on ways to deal with the current economic slowdown.
Participating in the discussion, Chowdhury said it was regrettable that the Modi government was viewing everyone with suspicion and not taking anyone’s advice to deal with the country’s economic woes.
Observing that tax rate cut would result in revenue loss of ~1.45 lakh crore, he wanted to know how the government will deal with the fiscal deficit. The debate in the Lower House mostly hovered around the GDP slipping to an over-six-year-low of 4.5% in the July-September quarter.
Attacking the Congress, Nishikant Dubey (BJP) said it is not right to believe that the GDP is the only parameter to assess the health of the economy and focus should be on sustainable economic development. “Sustainble economic development (is) more important than the GDP,” he said, inviting criticism from opposition members.
Mahua Moitra (TMC) said the economy has faced a crippling blow due to demonetisation and faulty implementation of the Goods and Services Tax. She also said the government was giving relief to Foreign Institutional Investors but the same was not being extended to Indian corporates. Shiv Sena’s Arvind Sawant also questioned the government’s move to sell BPCL. He said though the government is taking decisions, it is not looking at the impact.