New Delhi, April 29
The Lok Sabha tonight passed the Finance Bill, 2002 after union Finance Minister Yashwant Sinha rejected the demand for further rollback of tax proposals.
Replying to the two-day debate on the Bill, Mr Sinha also ruled out tinkering with Income Tax rates in future tax saying that-GDP ratio would be improved through better compliance and administration.
The Bill was passed by voice vote after adopting all official amendments moved by the minister and the rejection of amendments sought by the Opposition.
The amended Bill will now go to the Rajya Sabha which returns it before the President’s assent is sought.
Earlier winding up the two-day long discussion on Finance Bill in the Lok Sabha marking the completion of Budget exercise, Mr Sinha said the moderate 10, 20 and 30 per cent personal tax rates will remain to provide “stability” and revenue generation would be increased by bringing more people into Income Tax net and improved tax administration through computerisation.
Stressing that Rs 2,857 crore worth of rollback announced by him earlier has in no way “destroyed the sanctity or integrity of the Budget”, Mr Sinha rejected any further concessions because of the difficult fiscal situation.
The rollback announced so far itself would push up fiscal deficit to 5.4 per cent of the GDP from the budgeted 5.3 per cent if not matched by the expenditure control which he proposed to effect.
On the demand for rollback of the five per cent national security surcharge, Mr Sinha said it had been necessitated due to troops mobilisation at the borders and that on such like issues. Wrong signals should not be sent by creating an impression that the House was not united.
Refuting the criticism of his being a “rollback Sinha”, the Finance Minister quoted statistics to say that in the last 10 years every finance minister had brought in amendments to clauses in the Finance Bill and in terms of percentage his record was no worse.
