Rajya Sabha Clears Finance Bill 2016 - One Step Short of Enactment
THE Rajya Sabha yesterday passed the Finance Bill 2016, which will now go to the Rashtrapati Bhavan for the approval of the President for enactment into the Finance Act 2016. Most probably, they will get the President's signature today or tomorrow. The Finance Bill has to be enacted within 75 days after it is presented, that is by 14th of May 2016.
In his reply to the discussions on the Finance Bill, Finance Minister, Mr. Arun Jaitley concentrated mostly on GST and hoped the GST Bill will be passed in the Monsoon Session of Parliament.
On the demand for doing away with the one percent additional tax for manufacturing States, the FM said it was consensus of the panel of State Finance Ministers, but he was ready to go back to the States and persuade them to drop the additional tax as demanded by the Congress.
On the suggestion to create a dispute redressal mechanism headed by a Supreme Court judge, the FM was at his combative best in attacking judicial activism. He said it would be like giving powers to the judiciary to decide on the legislative power of taxation. He said “step by step, brick by brick” the courts are encroaching into the powers of legislature. He asked the opposition not to allow the judiciary to enter into matters of taxation, so far untouched by judicial intervention in legislation.
He said, “You are suggesting that if states can't decide in the GST Council, a body headed by the Supreme Court judge must then decide. For heaven's sake, I beseech you in the interest of Indian democracy not to go on this misadventure. With the manner in which encroachment of legislative and executive authority by India's judiciary is taking place, probably financial powers and budget making is the last of the only powers that you have left.”
On capping the GST to 18 per cent, he said the opposition demand is not realistic as it will handicap the States' and the Centre's power to tax luxury items and need based taxation.