Members of Parliamentary Panel on Finance ask for evaluate of company tax  

Lok Sabha despatched the Invoice to the committee on the request of Finance Minister Nirmala Sitharaman after she launched it within the Home within the first half of Parliament’s Funds Session
| Picture Credit score: ANI

The Parliamentary Standing Committee on Finance, throughout a six-hour-long assembly on Monday (February 24, 2025), questioned the federal government on the affect of the company tax lower launched 5 years in the past. 

As a part of a evaluate of the Union Funds, throughout recess of the Funds Session of Parliament which can reconvene on March 10, the Standing Committee headed by BJP MP Bhartuhari Mahtab met officers from the departments of Financial Affairs, Expenditure, Monetary Companies, Public Enterprises, Funding and Public Asset Administration, and Income. 

In accordance with sources, many Opposition members sought solutions from the Finance Ministry on whether or not the company tax cuts launched in September 2019 had elevated non-public funding. “The federal government has foregone income of practically ₹1.84 lakh crore because of company tax cuts in simply the primary two years of implementation of this lower. It’s a legitimate query to ask that in lieu of giving up this income, what has been the corresponding non-public funding,” one of many Opposition MPs stated.   

Segueing into this debate have been questions on how the federal government deliberate to fulfill the shortfall arising out of the revenue tax rebate introduced by Finance Minister Nirmala Sitharaman in her Funds speech on February 1. “With this measure, the federal government is foregoing revenue tax receipts of ₹1 lakh crore. How will the federal government meet this shortfall, contemplating the already unhealthy debt-to-GDP ratio,” one other member identified. There have been additionally questions on the variety of “zero-filers” after the modifications within the revenue tax slabs. 

The BJP MPs, in keeping with sources, additionally used the chance to level out “harassment” attributable to the products and companies tax (GST) regime. They highlighted the difficult slabs and arbitrary arrest powers. One of many BJP MPs additionally requested for an in depth evaluate of the Prevention of Cash Laundering Act (PMLA), asking for the variety of profitable convictions upheld by the Supreme Court docket to date.