Replying to discussions about the Lok Sabha financial bill, she said that the equilibrium tax has been repealed to address global economic uncertainty, and that customs tariff rationalization will support manufacturing and promote exports. She said the bill proposed to increase the exemption limit to Rs 1.2 lakh, providing unprecedented relief to taxpayers.
The financial bill proposed in Parliament on February 1 was approved by the House of Commons on Tuesday. “(i) proposes to remove a 6% equilibrium tax to address uncertainty in the international economic situation,” Sitharaman said.
Less import responsibilities
Amendments to the Financial Act proposed Monday to repeal the 6% balanced tax on online advertising for foreign companies such as Google and Facebook, such as Google taxes. The decision was due to trade negotiations between India and the United States ahead of the bilateral agreement.
In the previous budget, the center removed a 2% equilibrium tax to e-commerce companies.
The finance minister added that several goods used to manufacture electric vehicle (EV) batteries and cell phones will not have import tariffs amid the wider tariff cuts. She said it would help local producers with potential impacts on any reciprocity tariffs imposed by the Donald Trump administration from April 2. “Our goal is to enhance domestic production and enhance export competitiveness by reducing tariffs on raw materials,” she said, adding that only taxes or surcharges apply, not both. Up to 82 tariff lines subject to tax restrictions will be exempted from social welfare surcharges.
Income Tax Bills
Sitharaman said the new income tax bill, introduced in the House on February 13, has been reviewed by a selected committee, which was appointed to submit a report on the first day of the next meeting of the parliament.
“We will be accepting (income tax bills) at the monsoon meeting,” she said. Monsoon meetings usually begin sometime in July.
She added that the income tax collection target for the next fiscal year is realistic and after taking into account the “income” of up to Rs 12 lakh rupees into consideration, she added.
The finance minister said it raised privacy concerns to respond to the new income tax bill allowing tax departments to allow mobile phones and laptops, and the finance minister said there was a provision to check accounts, but the old law did not specifically mention digital records. She said the recent amendments were only intended to address the gap.
Sitharaman cites encrypted mobile messages that helped uncounted Rs 25 billion, and WhatsApp communications help track Rs 20 billion associated with cryptocurrencies. In addition to that, Google Map history has helped find cash hiding places, and Instagram accounts are key to proving ownership of Benami’s property.
The Finance Minister refuted the allegations about the Goods and Services Tax (GST) were not “unfounded” gradual, “the wealthiest Indians of the richest Indians contributed 41.04% of the household GST, while the lowest 50% contributed only 28% of the household GST”.
SC/ST/OBC Category
Answering questions about welfare for people who belong to the pre-determined caste (SC), pre-determined tribes (ST) and other backward caste (OBC), Sitharaman lists the steps taken by the Narendra Modi government. As many as 76% of the PM-Kisan program beneficiaries come from the SC, ST and OBC categories, she said.
Similarly, under the PM-AWA (Urban) program of 11.8 million houses built over the past 10 years, she said, there are 4.2 million homes for people in the OBC community, while 2.3 million homes in the SC community. About 60% of the beneficiaries of the PM-AWAS (Gramin) program come from the SC and ST communities.
