Finance Bill passed in Lok Sabha; cess on petrol & diesel stays

New Delhi: Finance Minister Nirmala Sitharaman on Thursday asserted her Budget proposals are aimed at improving ease of living and reducing pain of citizen, even as she did not accept the opposition demands of withdrawing cess on petrol-diesel and 2 per cent TDS on cash withdrawal.

Replying to the discussion in Lok Sabha on Finance Bill (2) 2019, which contains tax proposals for the current fiscal, the Minister said various initiatives in the Budget seek to promote a less-cash economy.

Lok Sabha later passed the Finance Bill, after approving more than two dozen official amendments, by voice vote, thus completing the Budgetary exercise for 2019-20 in the Lower House. "The intent of the government is to ensure minimum government, maximum governance. Ease of living is the primary driving force of Prime Minister Modi...we are trying to reduce the pain and making sure ease of living dominates everything that we do as regards to taxation," she said while winding up a debate, which lasted for about three hours.

The Minister did not accept the opposition demand to do away with 2 per cent TDS on cash withdrawal in excess of Rs 1 crore from banks, withdraw additional cess on petrol and diesel and remove 10 per cent customs duty on the newsprint.

On the proposal to hike tax liability on individuals earning more than Rs 2 crore, she said it will not impact Foreign Portfolio Investors (FPIs) provided they organised themselves as company. The Budget had proposed to increase surcharge from 15 per cent to 25 per cent on taxable income between Rs 2-5 crore, and from 15 per cent to 37 per cent for income above Rs 5 crore.