The Finance Standing Committee of Parliament will seek clarification from the Government on its stand on the Direct Taxes Code, the General Anti Avoidance Rules (GAAR) and the retrospective amendments to taxation rules.
The reconstituted committee, in its first meeting here on Friday to decide the future course of action, discussed the recent statements by the Finance Minister that the Government will take a relook at DTC and tax provisions that have a retrospective effect.
It is learnt that Opposition members in the panel have questioned the Government’s move. They said the panel had made its position clear on the GAAR in the DTC report.
“Retrospective taxing was announced in the Budget. Now media reports say that a panel has suggested review of the Budget suggestion, which was passed in Parliament. The Government is trying to subvert Parliament,” a member of the panel said.
The committee has also started discussion on setting the agenda for the next year. There are suggestions from the members that the working of public sector banks, particularly non performing assets, should be reviewed by the panel. The BJP members have sought a detailed discussion on the current account deficit by the panel.
Members of the Left parties have sought discussion on petroleum pricing mechanism, particularly the taxes involved in the cost structure. Congress members suggested the committee should analyse the effect of the recent policy decisions like FDI in retail and hike in diesel prices on the economy. They also wanted the panel to study how Central aid is being deviated by the States while implementing projects.
The Committee will hold its second meeting on October 19 and finalise its agenda. The Planning Commission will make a detailed presentation before the panel on the 12{+t}{+h} Plan in the next meeting.
Rahul’s First Meeting
This was Rahul Gandhi’s first meeting of the Finance Committee. He was in the HRD standing committee till now and had opted for the finance panel recently.
It is learnt that the Congress leadership wants him to intervene in key policy discussions of the panel.
“He didn’t sit for much time. But it seemed that he was interested in the discussions of the panel,” a member said.