TDP MP calls for removal of retrospective tax

New Delhi, Aug 6 (PTI) Telugu Desam Party (TDP) MP Lavu Sri Krishna Devarayalu has called for removal of the retrospective tax, highlighting the challenges faced by the industries due to it.

Addressing the Lok Sabha on the Finance Bill for 2024, BJP's key ally TDP's MP Devarayalu emphasized the detrimental impact of this tax on various industries and urged Finance Minister Nirmala Sitharaman to reconsider its application.

"One word that has to be removed from the dictionary of the Finance Ministry is the retrospective tax, which we keep hearing from time to time," Devarayalu stated.

Retrospective tax means creating an additional charge or levy of tax by way of an amendment from the specified date in the past.

Highlighting the specific challenges faced by the mineral development industry, he noted that they have expressed an inability to function under the burden of this tax.

"Yesterday, I was reading about the mineral development industry, which has come forward saying they can't function if you impose a retrospective tax," he said.

Devarayalu also brought attention to the grievances of the rice exporters, who have approached him regarding the negative impact of the retrospective tax on their businesses.

"Rice exporters have also come to me and said this retrospective tax has been implemented on us. If you keep doing this to earn some money from businesses that are doing well, this will not allow businesses to flourish," he explained, urging the Finance Minister to remove this tax to support business growth.

The TDP member elaborated on the issues taxpayers face due to the current tax policies.

"A lot of people are complaining that too many sections are being invoked. For example, if someone is given a penalty of 10 crore and has to go for reassessment, he actually has to pay 20 per cent to go for the reassessment. Because of this, taxpayers are feeling the brunt," he explained, hoping the Finance Ministry would address these concerns.

Despite his criticisms, Devarayalu acknowledged the positive steps taken by the Finance Ministry, particularly in reducing the corporate tax rate.

"There is a rise in gross revenue and I thank the Finance Minister for reducing corporate tax from 40 per cent to 35 per cent," he said.

The TDP MP also praised the introduction of the angel tax, which he believes will benefit startups and foster the development of the startup ecosystem in the coming years. PTI UZM AS UZM AS AS