BJP Delegation Meets Pranab on Direct Tax Code

Protesting the proposed Direct Tax Code (DTC), a high-level BJP delegation called on Union Finance Minister Pranab Mukherjee, reported PTI.

BJP claims that the code will adversely impact the small and middle income group and discourage savings, social security and capital formation.

The delegation comprised of Leader of Opposition in Lok Sabha Sushma Swaraj, her counterpart in Rajya Sabha Arun Jaitley and others, said report.

In the meeting, Mukherjee assured the delegation that DTC was merely at the drafting stage and discussions were still going on.

“The Finance Minister said he would not do anything (on DTC) for a year…till 2011—12,” Swaraj was quoted as saying.

During the meeting, BJP representatives expressed their observations about DTC to finance minister and also put forth their demands, said report.

“Our basic objection to the Direct Tax Code is that it increases the tax liability of the small and middle income group…..It also discourages savings which goes against the ethos of the middle class,” Jaitley was quoted as saying.

The delegation submitted a memorandum to the minister which said that DTC is ‘unreasonable and harsh’ on the small tax payer, small traders, senior citizens and women. BJP leaders termed it a ‘blind pursuit of ideas and concepts from the West’.

Nevertheless, BJP made it clear that it was in favour of reforming the 50-year-old income tax system but it should be ‘simple, progressive and imbued with the vision of 21st Century’, said report.
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