Trinamool MP Mahua Moitra says Taxation Bill will help 'profitable become more profitable'

"The corporate tax cut that you have proposed only helps the profitable become more profitable. It does not do anything to revive a very large part of this economy which is struggling,'' she said during the debate on the Taxation Laws (Amendment) Bill, 2019 in the Lok Sabha.

If this bill was really to help everybody, especially the MSME sector, then the tax rate reduction should apply to all entities, she said, adding that it should not apply to just the companies, it should apply to LLPs, partnership firms and other non-corporate entities also.

Tweaking tax rates will not solve the fundamental problem, she maintained.

The Bill which was moved by Finance minister Nirmala Sitharaman for consideration and passing, provides domestic companies with an option to pay tax at the rate of 22 per cent, provided they do not claim certain deductions under the Income Tax Act.

Currently, domestic companies with annual turnover of up to Rs 400 crore pay income tax at the rate of 25 per cent. For other domestic companies, the tax rate is 30 per cent.

Moitra lashed out the ruling BJP for its two moves -- demonetisation and Multiple-rate Goods and Services Tax.

She also wondered why the preferential treatment is being given to foreigners in the proposed legislation and demanded that the cut to 22 per cent from 30 per cent should apply to all entities.

What happened between March -- when the budget was brought-- and September, that an Ordinance had to be promulgated, she questioned.