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Pranab Mukherjee to reply on Budget 2012 proposals
May, 08th 2012

Finance Minister Pranab Mukherjee is expected to begin debating the Finance Bill in Parliament on Tuesday. Mukherjee will reply to various proposals announced in his 2012-13 budget speech.

The Finance Ministers debate in the Lok Sabha will be closely watched as he is expected to relook at some of the controversial proposals that have hammered investment sentiments in India.

The most important ones awaiting discussion are Vodafone tax issue and General Anti-Avoidance Rules (GAAR).

Although bowing to pressure, Mukherjee yesterday announced a slew of measures to provide relief to the jewellery sector and postponed implementation of the GAAR by one year, but offered no concessions to Vodafone involved in tax dispute.

Moving the Finance Bill, 2012 for consideration and passage in the Lok Sabha yesterday, the FM halved the capital gains tax for private equity investors to 10 per cent and relaxed the norms for arrest of persons involved in violation of Customs Act.

"The government has decided to withdraw the levy (one per cent excise duty) on all precious metal jewellery, branded or unbranded, with effect from March 17, 2012," he announced yesterday.

With PTI inputs

 
 
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