Terming the provisions of the proposed direct taxes code (DTC) as lopsided and overtly favouring the rich,Member of Parliament Gurudas Dasgupta has written to the Parliamentary Standing Committee on Finance,expressing his dissent on the report submitted by the panel.
The vulgar display of the wealth,the costly,marriage and birthday ceremonies,setting up of huge mansions in cities like Bombay and Delhi,should attract the notice of tax code, Dasgupta said in his dissent note.
Dasgupta argued that the effective rate for companies was 22.3 per cent in 2008-09,much lower than the statutory rate of 32.4 per cent. Further,the proposed rate in DTC is 30 per cent which is again lower than the present statutory rate,giving undue benefits to the highest income group.
As per the receipt budget,while companies earning profit before tax within Rs one crore were paying 25.70 per cent tax,those earning greater than Rs 500 crore were paying 22.55 per cent tax,he has argued.