Lok Sabha passes Finance Bill 2020 without discussion

NEW DELHI: Lok Sabha on Monday passed the Finance Bill 2020 with amendments as political parties agreed to clear the central government’s financial and tax proposals for the financial year 2021 without a discussion.

Opposition parties insisted finance minister Nirmala Sitharaman announce the government’s response to their demand for a financial package to deal with the coronavirus impact on businesses and livelihoods.

Some opposition members interrupted the voting on specific amendments to the Bill proposed by Sitharaman to insist that a package be announced before the Bill is cleared. Speaker Om Birla told members that he had met floor leaders earlier in the day to thrash out an agreement on clearing the Bill without delay. “I have met leaders of the floor. All leaders, keeping in



mind the country’s current situation, has agreed to pass the Finance Bill without discussion," the Speaker told the House. The Bill was passed by voice vote.

The Finance Bill proposed a more progressive personal income tax rate for people who do not avail of any tax incentives, extended the option of a 15% corporate tax rate without tax incentives for electricity producers and made dividends taxable in the hands of the recipient.

Earlier, companies had to pay 15% dividend distribution tax. The Bill also had a controversial proposal regarding tax residence which raised the fear that several non-resident Indians will be affected. The government had assured that the provision in the Bill will be modified. Finer details of the amendments which have been incorporated in the Bill are awaited.