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THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
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N A T I O N

UPA’s birthday gift: petrol, diesel price hike soon
PM requests agitators to call off anti-quota stir

New Delhi, May 22
Strongly indicating an increase in the price of petrol and diesel as “we cannot continue to subsidise energy consumption on this scale” Prime Minister Manmohan Singh categorically said here tonight that his UPA government had significantly improved the external environment for India’s development and progress.

Prime Minister Manmohan Singh, UPA chairperson Sonia Gandhi, Lalu Yadav, Ramvilas Paswan, Sharad Pawar, Dayanidhi Maran, Pranab Mukherjee and other leaders release UPA’s report card to mark successful two years’ of UPA government in New Delhi on Monday
Prime Minister Manmohan Singh, UPA chairperson Sonia Gandhi, Lalu Yadav, Ramvilas Paswan, Sharad Pawar, Dayanidhi Maran, Pranab Mukherjee and other leaders release UPA’s report card to mark successful two years’ of UPA government in New Delhi on Monday. — Tribune photo by Mukesh Aggarwal






EARLIER STORIES

 

UPA govt’s problems put achievements to shade
New Delhi, May 22
The UPA government completed two years in office today but the occasion brought little cheer to the ruling combine. The celebrations at the Prime Minister’s residence this evening were, at best, a routine and lackluster affair as the government’s achievements were clearly overshadowed by the host of problems that it is grappling with.

UPA’s 2 yrs of unfulfilled promises: BJP
New Delhi, May 22
The BJP today described the record of the last two years of the UPA government as of unfulfilled promises where corruption and price rise leaped beyond control even as internal security dangers clouded the country.

And now govt faces pro-quota ultimatum

New Delhi, May 22
Having failed to quell the anti-reservation movement with their assurance of fair play, the government now faces an additional predicament, a three-month deadline by the pro-reservationists to implement the 27 per cent quota for OBCs.



Pro-reservation activists scuffle with policemen during a protest in New Delhi on Monday. — AFP
photo

Pro-reservation activists scuffle with policemen during a protest in New Delhi on Monday

Peace process with Pak to continue: Pranab
Kolkata, May 22
Defence Minister Pranab Mukherjee has said country’s peace process with Pakistan will continue even though militant attacks are continuing in Kashmir from across the border.

CBSE results of Class XII today
New Delhi, May 22
The results of the Class XII examinations conducted by the Central Board of Secondary Education (CBSE) will be declared tomorrow. The results for all the regions, including Delhi, Ajmer, Chennai, Guwahati, Panchkula (Haryana) and Allahabad, are being announced together.

PM calls on Kalam
New Delhi, May 22
Prime Minister Manmohan Singh today called on President A.P.J. Abdul Kalam at Rashtrapati Bhavan and discussed “current issues of national importance”. Legislative business in the current session of Parliament also figured during the discussions. The meeting lasted 30 minutes. TNS

House panel blames futures trade for wheat price hike, calls for ban
New Delhi, May 22
A parliamentary panel has called for ban on the futures trade in wheat to contain spiralling prices of the cereal and asked the government to announce MSP at the start of the procurement season.

Opposition seeks FM’s resignation
New Delhi, May 22
Finance Minister P. Chidambaram today refused to make any “off the cuff” statement on sensex issue in the Rajya Sabha even as the opposition demanded his resignation holding him responsible for the bloodbath in stock exchange.

Pathak not to seek more time: Chidambaram
Probe into oil-for-food scam
New Delhi, May 22
Finance Minister P. Chidambaram told the Rajya Sabha during zero hour today that the Enforcement Directorate (ED) would submit in the next few days its third report to the Justice Pathak Inquiry Authority probing the United Nations Iraq oil-for-food scam.

Bill on immoral trafficking introduced
New Delhi, May 22
The Immoral Traffic (Prevention) Amendment Bill, 2006, which provides for stringent punishment to traffickers and those visiting brothels for sexual exploitation, was introduced in the Lok Sabha today.

RS nod to Taxation Laws Amendment Bill
New Delhi, May 22
The Taxation Laws Amendment Bill, 2006, that aims at curbing unaccounted (black) money and widen the tax base, today got the approval of Parliament with the Rajya Sabha passing it through voice vote.

SC relief to PSEB staff in border areas
New Delhi, May 22
In major relief to the Punjab State Electricity Board (PSEB) employees, the Supreme Court has said they would continue to get House Rent Allowance (HRA) as per the government’s March 7, 1989 order, which protected higher allowance to those workers posted in periphery of big towns within the 16 km radius from the border with Pakistan.

Videos

Altaf Raja's Music album 'Harrjaiie' launched.
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Replica of Amarnath cave built in Chennai.
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Nepal Maoist leaders on a New Delhi.
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UPA’s birthday gift: petrol, diesel price hike soon
PM requests agitators to call off anti-quota stir
Tribune News Service

New Delhi, May 22
Strongly indicating an increase in the price of petrol and diesel as “we cannot continue to subsidise energy consumption on this scale” Prime Minister Manmohan Singh categorically said here tonight that his UPA government had significantly improved the external environment for India’s development and progress.

“The international and regional environment is today more conducive to our economic development and national security than ever before,” Dr Singh observed releasing the “Report to the People” on the government completing two years in office.

He requested all those agitating on the quota issue to call of their strike and “have faith in our government to protect the legitimate interests of all sections of all students.” “The government is convinced of the need to have a fair, just and inclusive education system where every section of society feels that there is scope for their youth to acquire knowledge and skills as per their needs and become partners in the progress of this great nation. We will pay special attention to the needs of the socially backward classes while ensuring that no deserving student is denied an opportunity to secure education.”

Emphasising that the government remained committed to the bold vision of building a more equitable society, a more efficient economy and a more capable nation, Dr Singh cautioned that terrorism continued to pose a threat to the country’s cohesiveness and national integrity. He maintained “We will not compromise in our resolve to face it (terrorism) with courage, conviction and determination. This should be clear to all.”

Emphasing that in the past two years the government had launched some of the most ambitious programmes of development and empowerment, the Prime Minister drew pointed attention to the many initiatives like the Bharat Nirman, the National Rural health Mission, the Jawaharlal Nehru Urban Renewal Mission, the expanded Sarva Shiksha Abhiyan and the mid-day meal programme. The successful implementation of these programmes was imperative and called for collectively ensuring that higher outlays translate into better outcomes.

Recognising that a lot more needed to be done to bring prosperity to the rural areas, he spoke of increased credit availability to farmers, making farm credit more affordable by reducing interest rates, reviving Krishi Vigyan Kendras, increased investment in irrigation coupled with paying special attention to renewing water bodies and watershed development as well as creating a National Rain-fed Area Authority.

Dr Singh said the government had also empowered the ordinary citizen and ensured greater transparency in governance by enacting the Right to Information Act. “We are committed to ensuring that every citizen of our country lives a life of self respect and dignity. The youth are the country’s greatest asset. When empowered with capabilities they (the youth) can help build a stronger and a more dynamic India. We have to fulfil the aspirations of our young people.”

The Prime Minister noted that the government had significantly improved the external environment for India’s development and progress. “Our relations with our neighbours, with all major powers and all our economic partners have improved greatly in the past two years. The international and regional environment is today more conducive to our economic development and national security than ever before.”

Congress president Sonia Gandhi, who released state specific reports in Hindi, English and all regional languages, commended the steadfast commitment to the UPA itself. She expressed confidence that “this sensitivity to and understanding of each other will be sustained and deepened.”

She observed the UPA is not just a collection of political parties “but an idea that reflects the very nature of our society and polity, that celebrates the values that form the bedrock of our nationhood.”

Mrs Gandhi said, “In the long journey we have travelled some distance together. Let us not rest. Let us now move head, united in our confidence, unshaken in our resolve and unstinting in our efforts.”

With the UPA government crossing the second milestone, she congratulated the Prime Minister and his colleagues and said, “Our Prime Minister has provided the type of leadership that we all expected and that the nation hoped for.”

The ‘Report to the People’ provided an insight about the core economic and social sectors touching on health, education, assuring rights of the child, empowering women, SCs and STs, rural development, agriculture and cooperatives, disaster and water management, governance, reforms and strengthening civil society, panchayati raj, Centre-states ties, Jammu and Kashmir, energy, infrastructure, foreign policy and other initiatives.

The function was rather low key with all partners of the UPA on the podium. Conspicuous by their absence were the Left leaders who are supporting the government from outside. 

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UPA govt’s problems put achievements to shade
Anita Katyal
Tribune News Service

New Delhi, May 22
The UPA government completed two years in office today but the occasion brought little cheer to the ruling combine. The celebrations at the Prime Minister’s residence this evening were, at best, a routine and lackluster affair as the government’s achievements were clearly overshadowed by the host of problems that it is grappling with.

While the quota controversy is yet to be resolved, the Manmohan Singh-led government had to contend with a crashing sensex today even as it was put to great embarrassment when Labour Minister K.Chandrashekhar Rao threatened to walk out of the coalition on the Telengana issue and two members of the Knowledge Commission, a high-powered panel set up by the Prime Minister himself, quit to protest the move on reservations.

This is in addition to the government’s failure to control the spiralling prices of essential commodities, its inability to explain the shortfall of wheat in the public distribution system, the acute state of rural distress as evidenced by the continuing reports of farmers’ suicides ,the growing Naxal menace as well as the recent spurt in militant activities in Jammu and Kashmir. Having postponed the inevitable, the government will soon be forced to take the unwelcome step of hiking petroleum prices for which the government is unlikely to win too many brownie points.

On a day when the government should have been cheering the completion of two years in office, its ministers were a harried lot. While Finance Minister P.Chidambaram was busy trying to contain the fall-out of the sensex crash, his colleagues were plagued by unwelcome queries from their opponents and allies alike in Parliament. Home Minister Shivraj Patil was hard put to explain how the government is dealing with the Naxal violence, which is threatening to get out of control.

At the same time, agriculture minister Sharad Pawar was at the receiving end as members, cutting across party lines, today voiced their concern over the growing agrarian crisis, the fall in procurement of foodgrains, the government’s inability to maintain buffer stocks of wheat and its failure to curb inflation.

All this while, Prime Minister Manmohan Singh himself was trying to resolve the reservations controversy which showed no signs of abating. Dr. Singh met CPM leader Prakash Karat today in this connection as he kick started his consultations with political parties on charting a middle path on extension of quotas to OBCs in Centrally-funded educational institutions.

The spiralling prices of essential commodities and the unending crisis in the agriculture sector has become a major source of worry in the ruling combine.

Having promised to put farmers, weaker sections and the “aam admi” at the centre of all policy-making , concerned Congress leaders privately admit that the current situation is fast threatening to knock the bottom of their party’s “pro-poor” electoral plank." With the price of dal having gone up to Rs. 60 per kg., we are finding it very difficult to explain the government policies to the people,” is a common refrain among UPA ministers.

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UPA’s 2 yrs of unfulfilled promises: BJP
Tribune News Service

New Delhi, May 22
The BJP today described the record of the last two years of the UPA government as of unfulfilled promises where corruption and price rise leaped beyond control even as internal security dangers clouded the country.

BJP Parliamentary Party spokesman Vijay Kumar Malhotra said the common man was burdened with skyrocketing prices of essential commodities while corruption and scandals had become the order of the day.

He said during the last two years the ISI had widened its terror bases while Naxals and Maoists too flourished.

The Congress and the UPA had made several promises but many still remained a dream. The Congress had aligned with Telangana Rashtra Samiti (TRS) promising a separate state. But even after two years this had not been achieved.

The UPA, though promising a clean regime, had wilfully facilitated defreezing of the bank accounts of Ottavio Quattrocchi’s London bank accounts and no action was taken against the Congress and its president Sonia Gandhi named in the UN’s oil-for-food programme probe headed by Paul Volcker. 

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And now govt faces pro-quota ultimatum
Tribune News Service

New Delhi, May 22
Having failed to quell the anti-reservation movement with their assurance of fair play, the government now faces an additional predicament, a three-month deadline by the pro-reservationists to implement the 27 per cent quota for OBCs.

Despite the government’s assurance and the action being taken against them so far, students protesting against quotas claim their struggle is unlikely to mitigate.

For their part, the pro-reservationists who stepped in with their demands, today gave the government an “ultimatum” to implement the reservation policy within 90 days.

Part of the ‘Aarkashan Samarthak Mahapanchayat’ organised in the Capital on Monday, students, farmers and activists gave the government an “ultimatum” to implement the policy that will “uplift the socially, educationally and the economically backward”.

Taking on the anti-reservation protests, people in favour of reservation today led by former UP Minister Ashok Yadav, convener of the Mahapanchayat, said if the government fails to do so, millions of people “across the country will hit the streets”.

Criticising the concerns expressed against quotas by National Knowledge Commission Chairperson Sam Pitroda, Yadav accused the NKC of “scuttling the policy” and sought their expulsion.

Yadav, in an attempt to establish the seriousness of their ultimatum went on to add, “as many as 125 MPs belong to the OBCs, they can decide who will be the Prime Minister of the country”.

He added that the struggle for seeking reservation will grow in the coming days, if the government fails to take appropriate steps.

Meanwhile the hunger strike by the anti-reservationists entered the ninth day today. Medical students who have been asked to vacate their hostel rooms remain adamant on their demand for a judicial commission to review the existing reservation policy.

The students of the Youth for Equality who met the Health Secretary, Mr P C Hota, here said: “We have not made any headway yet, therefore the strike will continue”.

They also rejected Union HRD Minister Arjun Singh’s appeal to end their strike and “leave the issue to the Prime Minister”. Mr Singh today said there is a need to have faith in the PM and then move forward on the issue.

Hospital administrations on their part have reaffirmed that if the striking doctors fail to return to work, they will go ahead with the ad hoc recruitment to meet the requirements of the patients.

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Peace process with Pak to continue: Pranab
Tribune News Service

Kolkata, May 22
Defence Minister Pranab Mukherjee has said country’s peace process with Pakistan will continue even though militant attacks are continuing in Kashmir from across the border.

Mr Mukherjee said, but, at the same time the Indian troops would continue to be vigilant on the LoC and there could be no question of withdrawal of forces from the border.

The Defence Minister, who was in the city yesterday, said the attack by terrorists on a Congress rally on the Rajiv Gandhi’s death anniversary yesterday, in which several innocent citizens were killed, had not changed the Prime Minister’s scheduled meeting with various groups in Jammu and Kashmir on May 24 and 25.

The continuing peace process through dialogues could only solve the Kashmir problem.

He spent the whole day at his south Kolkata flat, meeting some Defence Department officials and also a few state Congress leaders. This was his first visit to the city after the party’s debacle in the Assembly elections.

Mr Mukherjee, who has resigned from the post of WBPCC president after owning responsibility for the party’s debacle, denied the Defence Department had anything to do with either in the manufacturing or maintenance of the EVMs used in the state Assembly elections.

He was replying to Ms Mamata Banerjee’s charges against him about his involvement in the hi-tech rigging in the recent Assembly elections in favour of the CPM. The charges of the so-called hi-tech rigging were baseless, he said.

The minister alleged it was Ms Banerjee who didnot want the Congress to jointly fight with the TMC against the Left parties. If she was so serious in fighting against the CPM, then she could sever their ties with the BJP and make a sincere attempt to dislodge the Left Front from power, he added.

Mr Mukherjee said he would not withdraw his resignation from the WBPCC’s presidential post. 

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CBSE results of Class XII today

New Delhi, May 22
The results of the Class XII examinations conducted by the Central Board of Secondary Education (CBSE) will be declared tomorrow.
The results for all the regions, including Delhi, Ajmer, Chennai, Guwahati, Panchkula (Haryana) and Allahabad, are being announced together.

The Class 12 examinations were conducted by the board across the country as well as overseas in March.

The results besides being made available at the respective schools, can also be accessed through SMS on mobile phones, Interactive Voice Response System (IVRS) on phone as well as on the Internet, the CBSE said in a statement.

Students can also log on to the websites www.cbse.nic.in and www.results.nic.in to access the results.

A total of 4,54,045 students — 2,63,286 boys and 1,90,759 girls — had appeared for the Class 12 examinations, registering a 7.04 per cent rise from last year’s 4,21,463 candidates. — PTI 

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House panel blames futures trade for wheat price hike, calls for ban
Tribune News Service

New Delhi, May 22
A parliamentary panel has called for ban on the futures trade in wheat to contain spiralling prices of the cereal and asked the government to announce MSP at the start of the procurement season.

Blaming the food policy of the government, the report said the procurement had declined at a time when the production had shown only a marginal fall, clearly indicting the skewed policy against the interest of the farmers and consumers.

“The government should ban forward/future trading in wheat so as to contain the prices of wheat in open market,” said the parliamentary standing committee on food and public distribution.

Mr Devendra Prasad Yadav, the chairman of the committee, said the government’s permission to undertake forward/future trading wheat, the prices of wheat had skyrocketed in retail market, without realising the commensurate benefits to the farmers.

The future trading in wheat, which was conceived for the benefit of farmers, he said, had not yielded desired results for them and in fact the speculation in wheat prices had affected the consumers at large.

“The Forward Market Commission, which is responsible for protecting the interest of farmers, under which, remunerative prices to farmers is ensured, have failed to monitor the future prices of wheat. In spite of limits on open position, price limits, upfront margin prescribed to controlled unbridled speculation in the market and to contain monopolistic condition in future market, there has not been any let up in the price of wheat.”

The report said the decision of the government to import wheat had emitted negative signals in regard to stock of wheat in the country.

The report said there had been a marginal decline in the production of wheat from a level of 72.15 million tonne in 2004-05 to 71.54 million tonnes during 2005-06, the procurement of wheat for crop year 2005-06 declined to 70 lakh tonnes from a figure of 90 lakh tonnes obtained during last year.

Minimum Support Price

The report said the government should have raised the minimum support price at the initial stage itself and could have avoided the low procurement of wheat this year.

Farmers offered less as they received better price from private traders than the MSP fixed by the government.

”Had the government sufficiently raised the MSP at the initial stage itself, they would not have gone to the private traders,” said Standing Committee on Agriculture, headed by Ram Gopal Verma.

”If the government really wants to increase the food grain production, they should announce MSP long before the arrival of the crops in the market,” it said.

The committee failed to understand as to why the government could not pay remunerative price to the farmers at the first instance rather than importing wheat and spending more on import.

Moreover, the government should not import the wheat at the time of arrival of new crop in the market, since it would be a discouraging factor for the farmers. The government could import the wheat later on, if they were not able to fill up the requisite stock from indigenous procurement, it added.

Farm loan rate

In the Lok Sabha, Union Food and Agriculture Minister Sharad Pawar today hinted at a possible reduction in the interest rate on loans to farmers from the present 7 per cent, saying the spate of farmers’ suicides was causing “grave concern” to the government.

Talks have been initiated with the Reserve Bank of India (RBI) and NABARD to remove irrationalities in credit flow to the cooperative societies to bring down the interest rate, he informed the Lower House while replying to a debate on ‘suicide by farmers in various parts of the country’.

Justifying wheat imports of 35 lakh tonnes, he said these were required to maintain buffer stocks and PDS levels in the wake of fall in its procurement.

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Opposition seeks FM’s resignation
Tribune News Service

New Delhi, May 22
Finance Minister P. Chidambaram today refused to make any “off the cuff” statement on sensex issue in the Rajya Sabha even as the opposition demanded his resignation holding him responsible for the bloodbath in stock exchange.

“I have taken note of concerns expressed by members...Any off the cuff statement could have damaging implications for the market. I will make a statement after getting all the facts,” Mr Chidambaram said.

Earlier, charging that government and market regulator SEBI had lost control over stock market, Opposition in the Rajya Sabha demanded the resignation of the Finance Minister saying it appeared “market is in the hands of manipulators”.

“The country’s stock markets have never witnessed such volatility as being seen over the past week,” former Finance Minister and senior BJP leader Yashwant Sinha said.

Mr Sinha raised the issue when Mr Chidambaram rose to introduce to the House the Taxation (Amendment) Law Bill.

The demand for Chidambaram’s resignation was supported by his party colleagues and some TDP members.

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Pathak not to seek more time: Chidambaram
Probe into oil-for-food scam
Tribune News Service

New Delhi, May 22
Finance Minister P. Chidambaram told the Rajya Sabha during zero hour today that the Enforcement Directorate (ED) would submit in the next few days its third report to the Justice Pathak Inquiry Authority probing the United Nations Iraq oil-for-food scam.

The minister said Justice Pathak has “assured me that he will endeavour and perhaps succeed in his endeavour of submitting the report within the extended period of three months.”

Mr Chidambaram said Justice Pathak had assured him that he would not seek an extension beyond three months.

Replying under enormous Opposition pressure to charges levelled by Samajwadi Party member Amar Singh that the authority had not submitted its report despite being in existence for nearly six months, the minister said the directorate had so far submitted two reports to the authority and was expected to submit one more report.

Before raising the issue, Mr Amar Singh said he was planning to speak out the bitter truth on the second anniversary of the UPA government. When Rajya Sabha Chairman Bhairon Singh Shekhawat asked him to speak only the truth, he remarked: “Truth is always bitter.”

Replying to charges on sale of BALCO shares much below the market value, the Finance Minister said he was indeed a Director of the company “as a private citizen” but had resigned after becoming minister. “BALCO shares were sold by the NDA under a shareholder agreement.”

He said no final decision had been taken on valuation or sale of residual shares. “No decision had been taken by the Ministry of Mines or the Committee of Secretaries. The final decision will be taken by the Cabinet Committee on Economic Affairs,” Mr Chidambaram said.

In his unsparing attack on the UPA government, Mr Amar Singh said their two years of rule were marked by the oil-for-food scam, differences within the Cabinet over the issue of reservation, Rs 9000 crore loss in the sale of BALCO shares, Navy war-room leak, Quattrocchi affair and import of wheat not fit for human consumption.

The entire Opposition and the Left parties, which are supporting the government from outside, supported Amar Singh’s demand for a statement from the ministers.

Janata Dal (United) member Digvijay Singh took the lead in demanding a statement from the ministers on the allegations made by Mr Amar Singh. He was joined by BJP member Ravi Shankar Prasad who requested the Chairman to direct the ministers to respond.

Union Human Resources Development Minister Arjun Singh and former External Affairs Minister Natwar Singh were present in the House when Mr Amar Singh raised the issue of the oil-for-food scam and differences over reservation.

The Opposition said the government’s silence on the issue would be construed as acceptance of charges.

When the Opposition continued with its demand for a statement from the government, the Chairman said if the government did not want to say anything, it could not be forced to do so.

When the Opposition told the Chairman that he had every right to ask the government to make a statement, Mr Shekhawat said he couldn’t ask the government to make a statement as the procedure of giving a notice before levelling allegations was not followed.

Sushma Swaraj of the BJP said that the Opposition was not willing to sit as silent spectators as there had been a series of allegations against the government. She requested the Chairman to allot the government time until Tuesday if it was not in a position to respond to allegations immediately. 

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Bill on immoral trafficking introduced

New Delhi, May 22
The Immoral Traffic (Prevention) Amendment Bill, 2006, which provides for stringent punishment to traffickers and those visiting brothels for sexual exploitation, was introduced in the Lok Sabha today.

The Bill, introduced by Women and Child Welfare Minister Renuka Chowdhury, seeks to amend the Immoral Traffic (Prevention) Act, 1956 and the Prevention of Money-Laundering Act, 2002.

Those visiting brothels for the purpose of sexual exploitation will be punished on first conviction with imprisonment for a term, which may extend to three months or with a fine, which may extend to Rs 20,000 or with both. In the event of second or subsequent conviction, imprisonment term may extend to six months and also a fine, which may extend to Rs 50,000.

The Bill seeks to enhance the punishment for a person who keeps or manages or acts or assists in keeping or management of a brothel.
Such a person will be punishable on first conviction with rigorous imprisonment for a term of not less than two years, which may extend to three years and also a fine, which may extend to Rs 10,000. In the event of second conviction, the imprisonment term will not be less than three years, which may extend to seven years and also a fine, which may extend to Rs 2 lakh.

The Bill also enhances the term of detention in a corrective institution from five years to seven years.

The Bill also empowers the Centre and the state governments to constitute an authority at their level for effectively preventing and combating trafficking in persons.

It amends the definition of “child” to raise the age of child from 16 years to 18 years, and omit words “minor” and “major” wherever they occur in the Act.

It gives powers of Special Police Officer under the Act to the Sub-Inspector in the place of Inspector.

Textile Minister Shankersinh Vaghela introduced the National Jute Board Bill, 2006, which provides for the establishment of a National Jute Board for the development of the cultivation, manufacture and marketing of jute and jute products. — UNI

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RS nod to Taxation Laws Amendment Bill
Tribune News Service

New Delhi, May 22
The Taxation Laws Amendment Bill, 2006, that aims at curbing unaccounted (black) money and widen the tax base, today got the approval of Parliament with the Rajya Sabha passing it through voice vote.

The Bill has already been passed by the Lok Sabha.

The new law amends a host of taxation laws, including the Income Tax Act, 1961, and the Customs Act, 1962. The Bill also seeks to amend the Customs Tariff Act, 1975, and the Central Excise Act, 1944.

Finance Minister P. Chidambaram said most of the provisions in the various Acts were procedural amendments aimed at removing the drafting lacunae.

He said the government expected 20 per cent increase in gross tax collections this fiscal, but expressed concern over the number of people in the tax net remaining static.

Initiating the debate on the Bill, BJP’s Suresh Bhardwaj said most of the amendments were “half-hearted” measures, which would not bring any relief to the people.

He also slammed the government for doing little to curb the parallel economy. “Complicated laws create a feeling of awe among income tax payees for IT officials”, he said demanding that taxation laws should be simplified.

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SC relief to PSEB staff in border areas

New Delhi, May 22
In major relief to the Punjab State Electricity Board (PSEB) employees, the Supreme Court has said they would continue to get House Rent Allowance (HRA) as per the government’s March 7, 1989 order, which protected higher allowance to those workers posted in periphery of big towns within the 16 km radius from the border with Pakistan.

Disposing of two sets of appeals filed by the PSEB against an HC order giving the benefit of higher HRA to those in the Doraha, Payal, Ajnala, Ramdas, Patti, Khemkaran, which fell either under the category of peripheral jurisdiction of big towns marked as “A-Class” for fixing HRA, or were covered under the 16-km border area benefit, the court said such employees were entitled to higher allowance as applicable in big towns.

“The order of March 7, 1989, clearly protects the higher HRA drawn by the employees of the board under the existing orders up to August 31, 1988. The clarifying circular of September 19, 1990, by the government, does not cancel or delete the protection clause in regard to the higher HRA,” the SC Bench said rejecting the government’s appeals. As per the government’s order of March 7, 1989, the employees posted either within the 8 km periphery of towns like Amritsar, Ludhiana and Jalandhar or 16 km radius of international border, would continue to get HRA applicable to “A-Class” city on account of special circumstances. TNS

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