Lok Sabha passes Finance Bill, FM Sitharaman says changes made to boose ease of business

The Lok Sabha on Tuesday passed the Finance Bill, 2021, which approves and gives effect to all the financial proposals of the government for the financial year 2021-22. The passage of the Financial Bill marks the completion of the budgetary process. 

Replying to debate on the Bill which has some changes in the proposal made in the union budget, Finance Minister Nirmala Sithraman said the changes have been made to boost the ease of doing business and easing the compliance burden. 

No change in the rate of income tax 

Sitharaman also took the opportunity to highlight there is no change in the rate of income tax. Elaborating on the same, she said, "This is a point on which even when the budget was being prepared, the Prime Minister was clear that we are not going to generate resources by raising the taxes."

Demand to bring petrol, diesel under GST

Some opposition members raised issues related to the hike in the price of petrol and diesel and demanded that the petroleum products be brought under the ambit of Goods and Services Tax (GST), on which Sitharaman asserted that she is open to discussing the idea in the GST Council. 

"The Centre as well as the State tax, so if there is a concern about the fuel tax, I honestly think on the basis of today's discussion- many of the States would be watching this and in the next GST Council if this comes up, I will be glad to have it on the agenda and discuss it," she said while noting that Maharashtra charges the highest tax on petrol and diesel.

"The point is, states also tax fuel, not just centre. When the Centre taxes, it is a part of a devolvable amount," she added. 

The price of petrol and diesel has been at an all-time high since February. Earlier, Union Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan had cited reduced fuel production and oil-rich nations seeking more profits as the primary reasons for the rise. 

To bring down the price, all measures are being looked at by the government, of which bringing petroleum products under the ambit of GST is also one.