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Journalism of Courage
Lok Sabha on Tuesday approved a Bill bringing some changes in the Income Tax, Wealth Tax and Expenditure Tax Acts with Finance Minister Jaswant Singh promising a relook at every aspect of the taxation regime. The Bill provides for income-tax exemption on the interest paid by the ship-breaking industry outside India for purchasing a ship abroad for ship-breaking.
The Bill also seeks to reduce the rate of tax collection at source on alcoholic liquor, scrap, timber and other forest produce, tendu leaves. The Bill also lays down that Central and State governments, clubs and embassies would be excluded from the definition of buyers.
Singh said his ministry had received representations for giving income tax exemption to interest payable to the Nordic Investment Bank, a multilateral financial institution constituted by the governments of Denmark, Finland, Iceland, Norway and Sweden on a loan advanced by it to a project approved by the central government, as was being done in the case of similar loans from ADB and IMF. He said “inadvertently”, these concessions had not been given to the Nordic Bank which was being subjected to tax deduction at source.
On changes in the taxation regime, Singh said: ‘‘We will be looking afresh at every aspect of the taxation regime.’’ He was replying to the discussion on the Taxation Laws (Amendment) Bill.
On concern voiced by members relating to the ship-breaking industry, he said government was looking into the problems of the labour employed in this sector. Earlier, the Opposition members came down heavily on the government for bringing forward certain taxation laws, contending these would benefit only a small group which had been lobbying for concessions.
Participating in a discussion on the Bill, S. Nachiappa of the Congress, charged that the government was paying attention to some segments with vested interest and not focusing on the larger problem of unemployment. He said government should give special importance to development of small scale industries employing less than 20 people.
Kirit Somaiya, BJP, lauded the Finance ministry for taking firm measures on the issue of tax refunds. He urged government to have a fresh look on the whole issue of tax deduction at source.
Raghuvansh Prasad Singh, of the RJD, questioned government’s move to give tax exemptions on liquor. Exemptions should instead be given on items of common consumption by the common man, he said.
