Lok Sabha sent the Bill to the committee on the request of Finance Minister Nirmala Sitharaman after she introduced it in the House in the first half of Parliament’s Budget Session
| Photo Credit: ANI
The Parliamentary Standing Committee on Finance, during a six-hour-long meeting on Monday (February 24, 2025), questioned the government on the impact of the corporate tax cut introduced five years ago.
As part of a review of the Union Budget, during recess of the Budget Session of Parliament which will reconvene on March 10, the Standing Committee headed by BJP MP Bhartuhari Mahtab met officials from the departments of Economic Affairs, Expenditure, Financial Services, Public Enterprises, Investment and Public Asset Management, and Revenue.
According to sources, many Opposition members sought answers from the Finance Ministry on whether the corporate tax cuts introduced in September 2019 had increased private investment. “The government has foregone revenue of nearly ₹1.84 lakh crore due to corporate tax cuts in just the first two years of implementation of this cut. It is a valid question to ask that in lieu of giving up this revenue, what has been the corresponding private investment,” one of the Opposition MPs said.
Segueing into this debate were questions about how the government planned to meet the shortfall arising out of the income tax rebate announced by Finance Minister Nirmala Sitharaman in her Budget speech on February 1. “With this measure, the government is foregoing income tax receipts of ₹1 lakh crore. How will the government meet this shortfall, considering the already unhealthy debt-to-GDP ratio,” another member pointed out. There were also questions on the number of “zero-filers” after the changes in the income tax slabs.
The BJP MPs, according to sources, also used the opportunity to point out “harassment” caused by the goods and services tax (GST) regime. They highlighted the complicated slabs and arbitrary arrest powers. One of the BJP MPs also asked for a detailed review of the Prevention of Money Laundering Act (PMLA), asking for the number of successful convictions upheld by the Supreme Court so far.
Published – February 24, 2025 06:28 pm IST
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