Hon.
Chairman, Sir, I rise to speak on the Finance
Bill for the second time in a row and I would like to congratulate
the honourable Finance Minister for presenting this Finance Bill
which is in line with the Budget he presented earlier this month.
Yesterday one of the honourable Members said that there was nothing much
for the common man in this Bill. Under the leadership of our honourable
Prime Minister and our honourable Finance Minister, the UPA Government has
already taken up the flagship programmes of crores of rupees and have also
ensured that at least 37 per cent of the total plan allocation is spent on the social
sector and an additional 25 per cent of the total plan is spent on the
rural infrastructure in order to make sure the common man is well taken care140 of. By lowering the income tax brackets,
the Finance Minister has already done a good service to the middle class160 of our great country. We have seen
that the recession all over the world has affected the GDP growth
rates. In most of the countries, the GDP growth rates were only one or two per
cent. With the stimulus the honourable Finance Minister had given last year,
India grew at 7 per cent which is one of the highest growth rates
in the world. To create more employment for the common man and also to ensure
that the GDP grows at over nine per cent, it is important that we involve more
funding in the infrastructure segment. Investments can come either by
disinvestments or by Foreign Direct Investments. But our honourable
Finance Minister has given an additional tax incentive of280 Rs.20,000 for investment in
infrastructure bonds. This will help small income groups also to become a part
of the infrastructure development of the country. The micro, small
and medium enterprises contribute nearly 45 per cent of the manufacturing
output and320 40 per cent of
our exports. Hence, the amendment enhancing the monetary limit from Rs.40 lakh
to Rs.50 lakh for compulsory tax audit not only recognizes the healthy growth
in the economy in the last few years, but also is needed to provide relief to
the small businesses in the form of reduced compliances. Enhancement of
weighted deduction from 150 per cent to 200 per cent is a welcome move to
encourage research. The amendment involves a change in definition from
‘scientific research’ to ‘research’ which is making the encouragement to
research more broad-based. I have a suggestion in regard420 to the Income Tax relief. We are
a country with significant mineral resources and mining is an important
activity. The economic growth is also measured specifically with mining as an
important element. A lot of workers in this segment have a hazard
allowance of Rs.800 per month. This amount was fixed several years ago.
Inflation has gone up but this480
amount has not been increased. In my constituency, there are a
lot of coal mines. I specifically request that this exemption be increased to
Rs.2000 per month considering that no revision has taken place for several
years earlier. Honourable Finance Minister has announced that the Direct Tax
Code is in the process of finalization. One of the important modifications
in the Direct Tax Code is in respect of the retirement benefits of
Provident Fund, Public Provident Fund, Superannuation, Gratuity, etc. 560 The proposal released are not very
clear in respect of the transition to new tax regime. It appears that
credit to Provident Fund Account is exempt and it is not clear about
superannuation and Public Provident Fund. It is important that being a welfare
measure, this issue needs to be looked into during the process of finalization.
Yesterday, one of our colleagues has said that too many services have
been brought into the Service Tax net. However, our Finance640 Minister has already announced that the General
Sales Tax will be implemented shortly. Whenever all the services come into
this, there would be a smooth flow towards implementing the General
Sales Tax. Considering the Cenvat chain is already extended to all levels and
to all industries, levy of Service Tax on additional services will not increase
the cost of goods and services. 700
The Cenvat on capital goods is extended from 50 per cent to 100 per cent in the
first year for the small-scale sector. This will alleviate the hardship
of the small-scale sector which is generally starved for working capital. As we
are aware, agricultural production and agriculture-based industries should be
encouraged. We have a target of over 200 MT of agricultural output this year
and the Prime Minister and the Finance Minister have already implemented a
scheme providing nearly 55 per cent of the drip irrigation which is taking
place in the rural areas. Our honourable Chief800 Minister is also giving a subsidy
of 45 per cent on the drip irrigation programme. If the excise duty exemption
is given for the drip irrigation, cases of suicides of farmers will definitely come
down. Our colleague was saying just now that840 there are several suicides taking
place in the farming community. Actually, it was during the Telugu Desam
Government that several farmers suicides took place. However, after the
Congress Government came, we gave the free power scheme, and farmers are no
more committing suicides in Andhra Pradesh. Telangana Region in Andhra Pradesh
has been given a step-motherly treatment by successive State Governments.
Because of no jobs in Telangana region, a lot of people are going to Dubai
doing menial jobs. As you are aware, global recession has affected them; most
of them are coming back to their home town. But, there are no jobs available.
Many of them are committing suicides. They are unable to get any jobs and960 are under severe mental stress. It is
also seen that Telangana area contributes over 50 per cent of revenue in
Andhra Pradesh980 and there is
a need that much more needs to be done through the honourable Finance
Minister by giving a package as was given to the Bundlekhand area. I would
also request that 100 per cent income-tax relief is given for units being set
up in Telangana region, except the Hyderabad city, so that the people of
Telangana have an opportunity to be part of the growth process. With these few
lines, I support the Bill proposed by the Finance Minister.
I
would most humbly like to ask the honourable Finance Minister whether
this positive turnaround in the economy is capable of improving India’s
position in the Global Hunger Index. I would like to know if
this would be able to change the figure of India which is housing 33 per
cent of world’s poor. I would like to1120
know whether this Finance Bill and the taxation proposals have got any relation
to address the needs of crores of citizens deprived of basic education and
minimum health care. While passing the Finance Bill and the taxation proposals,
we cannot ignore the recent countrywide strike called by the Communist Party
and some other parties for reducing the price line of essential commodities
and introduction of all-out State trading of essential commodities and sale
through PDS in fixed and fair prices. If one considers the strike even a
partial success, then it surely blackens the Government’s claim of its economic
success. Sir, inflation concerns the consumers but at the same time the Finance
Minister placed it as an essential companion of economic growth. The honourable
Finance Minister has given some miserly concession in Direct Taxes to the tax
payers of upper1260 bracket.
The tax payers in the lower and middle brackets received very little benefits.
I would like to strongly suggest1280
the revision in the slabs. But the burden of indirect taxes which affects the
entire population of the country, from prince to pauper, has been increased
heavily. The rise in petrol and diesel prices which has been
effected by increasing the Customs and Excise duty and the decision of
de-regulation of prices of petroleum products has raised the prices of every
essential item of livelihood and derailed the Government’s control measures on
prices and inflation. Moreover, failure to collect taxes from the corporate
houses and companies to the tune of Rs. 13,000 crore in the last fiscal is a
failure of the Government and proves further the soft attitude of this
Government towards the corporate sector. Revenue collection in
this1400 sector
should be reinforced without delay and with diligence. Goods and service
taxes are going to bring in more service sectors under the taxation net and
thereby putting more burden on the already over-burdened people. Health,
education, electricity, power supply, 1440
communication all comes under the service sector. I do not find any
humane reason for giving tax holidays to the industrial sector, especially for
the Special Economic Zones and for some States. It is a peculiar fact that
those who enjoy such holidays for years in terms of electricity, land,
Excise, Customs and other duties are sheer profit makers and never see the
interest of the workers, employees or the local people. I would like to request
the honourable Finance Minister to put a stop to such things. The
under-developed areas should get special packages. The Union Government must
search and research to find out where lies the lacunae in the federal system
that even the flagship programmes find scant success. It is not a place of
blaming the States but a place to ponder over as to what measures can improve
the so-called human face of democracy. If one blames even the bureaucracy for
corruption and inefficiency, the question1600
comes whether bureaucracy runs polity or polity runs bureaucracy? Therefore, I
cannot support this pro-capitalist, pro-corporate Finance Bill.
