Tag: Indian budget 2009

Cut motion and government fall

Lok Sabha is in recess. Budget session will resume in April. Various parties have said they will bring cut motions against increase of petrol and diesel prices in budget. Government is firm in its refusal to rollback price hike. UPA allies have opposed price hike.
If a cut motion is passed the government falls. Many have commented that no party wants elections and cut motion will not be passed. Some parties may not like to vote with BJP. They are wrong. The unity shown by the parties on budget day may repeat. Left Front has said the price rise is not a political issue, it is a people’s issue. They will remind people that Congress voted with BJP to pull down V. P. Singh government. In politics there are no permanent friends or enemies.
It is not a question whether any party wants election or not. Sometimes things get out of hand. It happened in 1999. Just a year after election AIADMK withdrew support to Vajpayee government and the government lost the vote of confidence. Those who had hoped to form the government could not do so. Elections followed. The best laid plans of men and mice go awry.
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Comments on Budget 2009

My comments on Budget 2009-10 are as below:

Tax exemption limit should be same for all categories. It can be Rs.1,60,000/- or Rs.1,90,000/- or Rs.2,40,000/-. It was expected that it would be raised Rs.2,00,000/-. As it did not happen there was disappointment.

Abolition of Fringe Benefit Tax is good.

Minimum Alternate Tax should not have been increased from 10% to 15%.

Abolition of Commodity Transaction Tax is good.

Not taxing anonymous donations received by charitable organisations to the extent of 5 per cent of
their total income or a sum of Rs.1 lakh, whichever is higher is good.

Reducing the basic customs duty on permanent magnets – a critical component for Wind Operated Electricity Generators – from 7.5 per cent to 5 per cent is good.

Reducing the customs duty on influenza vaccine and nine specified life saving drugs used for the treatment of breast cancer, hepatitis-B, rheumatic arthritis etc. and on bulk drugs used for the manufacture of such drugs from 10 per cent to 5 per cent and totally exempting them from excise duty and countervailing duty is good.

Reducing the customs duty from 7.5 per cent to 5 per cent on two specified life saving devices used in treatment of heart conditions and totally exempting them from excise duty and countervailing duty is good.

Extending service tax to lawyers is good. P. Chidambaram was a lawyer and he exempted lawyers from service tax.