| Every FM expands the scope of service tax |
| Our Bureau / New Delhi February 28, 2006 |
| What were the kind of pressures of the coalition in the Budget? There was no pressure at all. I had dinner last night with my family, I attended two weddings last week, I accepted an invitation of Jyotiraditya Scindia. There was no pressure as I am bound by the National Common Minimum Programme, guided by the National Advisory Council and my conscience. The Left parties have said that the Budget is only for the upper middle class? The Budget benefits every section of the population. There are huge benefits for rural India the farmers, the housewives, every section of the population. A significant section of the corporate sector wanted the Fringe Benefit Tax (FBT) to be abolished, and a suggested alternative was to hike corporate tax. You have merely tinkered with the FBT? A higher corporate tax does not advance the principle of horizontal equity; the FBT is justified as it promotes horizontal and vertical equity. So far, no one has filed returns under the FBT as the due date is October 2006. In the case of superannuation, we have provided a tax exemption of contributions upto Rs 2,00,000 per person. This is substantial, as the per capita income of the country is merely a tenth of that. The government appears to be sending mixed signals regarding setting up the Sixth Pay Commission. Prime Minister Manmohan Singh announced the setting up of the Commission, however, the economic survey denounced it. And your Budget speech was silent on it. What |
