LS resumes debate on Finance Bill

New Delhi, Mar 20: Congress' Naveen Jindal today made a strong case for more allocation for sports with special emphasis on Olympic disciplines.

Participating in the resumed discussion on Finance Bill 2006-07 in the Lok Sabha, he urged the government to exempt corporate houses from income tax on amount of sponsorship they provide to Olympics sports events.

''This will help to encourage the corporates to shift their focus of their sponsorship from cricket to Olympic sports,'' he said.

Terming the 2006-07 budget as ''outstanding,'' Mr Jindal welcomed the outcome budget presented by Finance Minister P Chidamabaram.

He appreciated the government for the proposals in the budget to increase flow of farm credit and reduce the rate of interest.

BJP's Girdharilal Bhargava wanted the government to implement more programmes for the uplift of the rural poor, besides augmenting urban infrastructure.

Mr Lal Singh (Congress)said the farmers should be equipped to the level necessary for competing effectively with the international market.

BSP's Mitrasen Yadav complained that the rural banks were not effective in meeting the credit needs of the rural populace.

Initiating debate on the Finance Bill, Mr Laxminaryan Pandey (BJP) said there was nothing in the Budget that could arrest expanding parallel black economy, and measures like suggesting the withdrawing of Rs 500 denomination currency note would be a futile exercise as in the case of withdrawing Rs 1000 denomination currency note in the past.

He suggested the enlarging of income tax net, reducing the increased service tax to earlier 10 per cent and withdrawing of interest income tax on the cooperative banks.

Mrs Krishna Tirath (Cong), however, supported the Finance Bill saying that the Finance Minister had done a commendable work by increasing the allocation for education, health and infrastructure sectors.

BJP's Ananta Nayak asked for raising the standard reduction limit while Mr Yerran Naidu of TDP sought the waiving of loans of small and marginal farmers and bringing about a special scheme for educated unemployed youths.

Mr Vijaykumar Khandelwal (BJP) also criticised the Budget for imposing tax on the income of cooperative banks and revamping of the tax administration, more tax deductions for senior citizens and checking of proliferation in issuing of fake PAN numbers.

Mr Afzal Ansari (SP) also sought withdrawal of the raise in service tax, saying it would hit the poor. He said it was unfortunate that the government had failed to simplify the tax structure. ''As a result, only 25 per cent of the people understand the budget proposals. BJP's Prof Rasa Singh Rawat described as ''totally irrational'' the proposal to impose excise duties on soap and umbrella and demanded its immediate withdrawal. He also deplored the imposition of tax on marble, saying it would adversely affect the domestic industry in Rajasthan, urging the proposed tax be rolled back.

Similarly, he also wanted the Finance Minister announce some sops to the states, which would be losing revenue due to implementation of VAT system.

Supporting the Finance Bill, Prof M Ramadass (PMK) said the various provisions in the budget would provide stability and strengthen the tax structure in the country.

Dr Sebastian Paul (Independent) also supported the budget proposals and praised the budget.

However, Prof Mahadeorao Shiwankar (BJP) urged that the support price of paddy be raised to Rs 1,000 per quintal. He said farmers were hard hit by the hailstorm in Vidarbha region, which caused a loss of Rs 1500 crore. Noting that 75 people were killed and 150 injured in the unseasonable rains, he asked the Centre to announce at least Rs one lakh compensation to the family of each deceased and provide a job to at least a member of the family.

UNI