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Senior Parliamentarian and Biju Janata Dal leader Bhartruhari Mahtab has asked the Centre to be careful while drafting legislations.
Citing BusinessLine’s report in the Lok Sabha on Monday, Mahtab said the Centre had gone back on the promise that the decrease in MAT rate will be applicable from 2019-20. Later, the Centre accepted Mahtab’s suggestion and brought an amendment correcting the Taxation (Amendment) Bill.
He said such mistakes have happened earlier, too. “The best thing is that the Finance Minister took note of the error that had crept into the Bill and she brought an amendment to the Taxation (Amendment) Bill. The September 20 Ordinance and the Finance Ministry release that followed gave an impression that the amendment to the Taxation Act will be from FY 2019-20. But the Bill said it will be effected from 2020-21. I just asked politely whether it is a printing error or the Government wants to go back from the pronouncement of September 20. The Minister said she is bringing an amendment to that effect,” Mahtab told BusinessLine on Tuesday.
Mahtab said when he read in the paper about the matter, he thought he should draw the attention of the Minister on whether it was a mistake or a deliberate attempt of the government to take it beyond 2010-21. “They corrected it and that is a good thing,” he said.
Citing the report, Mahtab said in the Lok Sabha that in September, the Finance Minister announced a cut in the corporate tax rate from 30 per cent to 22 per cent and the MAT rate from 18.5 per cent to 15 per cent. “It was assumed that the cuts would be implemented from the financial year, 2020. The Bill says the lower MAT rate will be applicable from the financial year 2021. Is this a drafting error? If not, it will impact the economy. The smile has definitely turned into a frown,” he said.