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July 24, 2014

Focus of the government should shift from growth to social justice: Saugata Roy in Lok Sabha

Focus of the government should shift from growth to social justice: Saugata Roy in Lok Sabha

Trinamool MP Saugata Roy today spoke in theLok Sabha on the Finance Bill, 2014. Speaking on the taxation proposals of theGovernment, he appreciated most of the moves of the Central Government, with arider. He urged the Government to change the focus from growth to socialjustice. He claimed that several exemptions were meted out to corporate but thepoor should not be taxed.

Speaking on the good and services tax (GST)he said the concerns of revenue loss by States must be taken into considerationby the Centre. The reduction in central sales tax at the Centre`s directionresulted in a loss of Rs 4300 crore to West Bengal exchequer as the promisedcompensation was not given, he said.

Speaking on the taxation policy of the NDA,he commented, “The union government`s total expenditure in GDP ratio has seen asharp drop from 15.7% to 13.9%, farther shrinking the fiscal policy spaceavailable to the government. Two, no comprehensive road map has been presentedto step up the country`s tax to GDP which is at a low level of 17%. If I maymention that the tax to GDP ratio in OECD countries is 33.8%. In Brazil it is33.2% and in India it is 16.3%. So there is no effort to raise the tax and theGDP ratio. There are no measures to adverse the lack of progressiveness ofcountry`s tax structure which depends on the indirect taxes to the extent of almosttwo third of the total tax revenues.”

Saugata Roy demanded that the Income Taxexemption limit be extended from Rs 2.5 lakh to Rs 3 lakh (Rs 3.5 lakh forsenior citizens). He spoke at length on the necessity of the retrospectivetaxation. On black money he said, this budget does not mention any steps tostrengthen the administrative machinery of various agencies required toaddress black money related issues.