New Delhi: The BJD Thursday termed the Taxation Laws (Amendment) Bill as ‘ineffective’ to address the economic crisis in short term citing that the Bill doesn’t not address the issues pertaining to consumption side.
Speaking on behalf of the party on the Bill in the Rajya Sabha, BJD MP Amar Patnaik said pump priming the economy by increasing government expenditure on roads and houses and other things probably could have been thought of as an additional thing to fiscal measures.
“The demand side has not been addressed – the consumption side was not addressed. I would say that in the short term, maybe, it will not help to prop up the economy. I am sure that with the lag effect gone in the future quarters, the impact would be seen in terms of improving the economy,” Patnaik said.
The BJD MP said that the MSMEs may be left out due to the new tax Bill.
Patnaik raised concern over the exclusion of mining sector from the reduced tax rates and said that since the economy of Odisha is largely dependent on mining sector, spurt in mining activities would impact the economy of the state.
He urged the Union Finance minister to include mining in manufacturing sector to get the benefit of 15 per cent tax rate.
While concluding on the Bill, the BJD MP urged the Union government to continue the financial support to disaster-prone states like Odisha, irrespective of the economic situation.