Govt may consider some tax proposals in vote on account
January, 04th 2014
CNBC-TV18 learns from sources in the finance ministry working in the Budget division that the government is considering changes that can be made to the tax structure and are also studying past precedence to see what kind of changes were made by earlier outgoing governments.
It is looking at the NDA government’s outgoing proposals in 2004 where it had announced that it would make changes to the income tax deduction limit and restructuring of loans for the sugar and tea industries. Apart from that, there were several changes made to indirect taxes as well - lot of concessions were given to industry, ofcourse that was a different economic scenario than what is present currently.
The fact is that the finance ministry is very actively considering this decision. Whether it happens or not we will have to wait for the vote of account to see and also depending on how political factors shape up.
Meanwhile, speaking to CNBC-TV18 on this issue a few days back , Finance Minister P Chidambaram said, “Technically changes can be made both in direct taxes and indirect taxes. Nothing prevents a government from doing that.
The government is a government which enjoys the confidence of parliament and it is a full fledged government until a new government takes over. There is no such concept as a government that is prohibited or prevented from making tax changes. I can sight examples where tax changes have been made in the past, but whether there will be tax changes it is too early to say.”