Tax bill passed in Lok Sabha in minutes without debate

New Delhi: Faced with nearly two weeks of logjam in Parliament, the government on Tuesday adopted a belligerent stance and got the Taxation Laws Amendment Bill, the new amnesty scheme for black money, passed in the Lok Sabha without any discussion amid vociferous protests by Opposition members.

While the Opposition termed it as a “black day”, the government said it had to get the bill passed in view of the “urgency” of the situation. It was apparent that the back channel talks to break the standoff had failed. The Opposition MPs, who were shouting slogans demanding a discussion on the demonetisation drive under a rule which entails voting, were in for a shock when finance minister Arun Jaitely got up to make his opening remarks on taking up the bill for consideration and passage.

Amid slogan-shouting and protests, Speaker Sumitra Mahajan ruled that the bill be passed without discussion and without pressing for amendments that needed presidential assent in view of the “urgency of the bill”, Many Opposition MPs who had moved amendments to the bill then raised points of order, which were again overruled by the Speaker and the bill was passed within minutes.

Under the proposed Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana 2016 (PMGKY), people who voluntarily declare their black money in cash and bank deposits will have to pay 50 per cent in taxes (tax, surcharge and penalty) and 25 per cent of the total income declared will be locked in for four years. The money will be locked in an interest-free deposit scheme for four years, which will be notified by the RBI under the Pradhan Mantri Garib Kalyan Deposit Scheme 2016.

The Opposition was up in arms against what it called the strong-arm tactics of the government. “The government used its brute majority in the Lower House to push the bill through,” Congress spokesman Randeep Surjewala said. The Opposition members in the Upper House claimed that the NDA government was pushing the laws as money bills in order to bypass the Rajya Sabha, which does not have the power to block such laws.

Congress’ Lok Sabha leader Mallikarjun Kharge said: “We want that the Income-Tax Amendment Act should come through the rules. The amendments proposed by the Opposition MPs and leaders should also be kept in mind before taking the assent from the President.” The Revolutionary Socialist Party said it was planning to take up the issue with President Pranab Mukherjee.

Trinamul Congress leader Saugata Roy said: “The government has been totally undemocratic, dictatorial, authoritarian in passing such an important bill without discussion amid din. It has taken advantage of its superior numbers to avoid a discussion. It is unfortunate that we did not get any relief from the Chair. I had written to the Speaker (Lok Sabha) in the morning that this bill should not be allowed to be passed in the din. But what we apprehended happened. In spite of all of our protests, this bill was passed. The very purpose of the bill was sort of defeated.”

CPI(M) leader Mohammad Salim said it was a “black day” in the history of the Lok Sabha and that it was like an “undeclared emergency”.

The government, on its part, stuck to its stand that it was ready for a discussion on the demonetisation of currency notes of Rs 500 and Rs 1,000 but under a rule that does not entail voting. Sources indicated there had been efforts by the Opposition to make the government agree to a discussion under at least Rule 184, which though entails voting is not an adjournment motion.

“Parliament was convened on November 16, and since then there has been no discussion. The discussion in the Lok Sabha should begin on Wednesday,” parliamentary affairs minister Ananth Kumar said. Mr Kumar said the government was in touch with the Opposition parties and that except for four or five parties, the others were ready to talk in the Lok Sabha.

“It is unfortunate. The entire country wants to hear what the parties have to say on the issue. We request all parties to come for the discussion. The Prime Minister will intervene and the finance minister will reply,” he said.

There should be no division in the House. In the Rajya Sabha, the discussion had been taken up under a rule that does not entail voting. Six hours of discussion have already been held.

Alleging the government was determined to “undermine” the Upper House, the Opposition parties demanded that a committee be set up to look into issues affecting the prestige of the House. Raising the issue through a point of order after the House reassembled at 2 pm, the Samajwadi Party’s Naresh Agarwal said there was an effort to undermine the authority of the Upper House, and arguing that the government had brought the Taxation Laws (2nd Amendment) Bill 2016 in the Lok Sabha on Monday to amend the Income-Tax Act.

He said the aim was to convert it into a money bill after which the Rajya Sabha would be forced to pass it. His charge was backed by other Opposition parties, including the Congress, SP and TMC.

Supporting the SP member’s demand for a committee to examine all issues affecting the Upper House’s prestige, Congress MPs Rajiv Shukla and Jairam Ramesh and members of other parties said it was a serious matter that many laws were being introduced as money bills by the government which undermined the Rajya Sabha.

Giving his ruling, deputy chairman P.J. Kurien said the Constitution was very clear on what was a money bill and what was not, and asked Mr Agarwal to give proper notice for setting up of a committee. As the Chair tried to resume the debate on demonetisation, Opposition parties’  members, including from the Congress and TMC, trooped into the Well shouting slogans against Prime Minister Narendra Modi, forcing the Chair to adjourn the House for the day.