Finance Bill debate lacklustre

Mixed response in lok sabha

The much-debated proposals to tax cash withdrawals above Rs 10,000 and introduce a fringe benefit tax (FBT) on companies evoked mixed response in the Lok Sabha today.

The Finance Bill, 2004 came up before the House for consideration after Finance Minister P Chidambaram moved it. He is expected to announce certain amendments to the Bill when he replies to the debate on Monday.

Today's debate was boycotted by the National Democratic Alliance. Initiating a discussion on the Bill, Congress member Sandeep Dikshit supported the cash withdrawal tax but suggested that the limit be raised from Rs 10,000 to Rs 35,000.

He also described the FBT as a "bold move" saying in many countries, companies paid 30 per cent tax on these benefits. Corporate India must cooperate with the government in this regard, he said.

Joining the discussion, Communist Party of India (Marxist) member Tarit Baran Topdar supported the FBT move and wanted the Rs 10,000 limit retained though his party colleague Rupchand Pal said he had reservations on the proposal.

Pal said "black money" could be unearthed in several other ways if the government meant business. He felt the proposal would not help in checking this malaise.

The "dream Budget" of the finance minister in 1996 had a voluntary disclosure scheme but the people benefited by it were not even income tax payees, he said. Senior citizens had been "duped" in the current Budget, Pal added.

The members of the Left wanted the tax base widened in order to rope in big farmers and opposed proposals to allow 100 per cent foreign direct investment in retailing and construction "at least for the time being".

Without fanfare

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• The Bill was taken up after the finance minister moved it for consideration of the Lok Sabha members
• Chidambaram will announce certain amendments in the Bill when he replies to the debate on Monday
• National Democratic Alliance boycotted today's debate
• CPI (M) member Tarit Baran Topdar favoured retention of the tax on cash withdrawals of Rs 10,000 and above