The Hindu : National : BJP hits out at Centre's service tax policy

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BJP hits out at Centre's service tax policy

Gargi Parsai

NEW DELHI: The Bhartiya Janata Party on Friday attacked the government for its budget proposals, which it said would fuel inflation in food articles, health, education and housing and make the life of the common man more difficult.

Initiating a discussion in the Rajya Sabha on the budget, Leader of Opposition Arun Jaitley said he was not at all enthused by the budget proposals. “The devil in the budget lies in details, which are clearly concealed.”

While raising the issue of the double-digit food inflation, Mr. Jaitley was particularly harsh on the government's proposal to “cleverly add a host of areas under the service tax net,” which was designed to hit the “vulnerable sections” in health care, housing, IT, education, travel, property rentals and add to the overall inflation through hike in railway freight.

“The service tax is in addition to the other duties that are already there. The more vulnerable you are, the more you will be hit with this budget. We will sink with this budget.”

He said that in areas like insurance premium on health care and instalment payments for middle class housing, the service tax was imposed while the rich were spared.

By levying and hiking duties on crude oil and petroleum products, the government would be fuelling inflation further and hit dynamic sectors like real estate, cement and automobiles.

While the expectation from the budget was a policy direction and a road-map to push up growth, it would instead “unquestionably accelerate inflation,” he said.

Spectrum issue

Criticising the government's handling of the 2G spectrum issue, Mr. Jaitley said if properly handled it could have raised Rs. 60,000 core which would have been enough to lower the fiscal deficit by one cent if not more. The process kept the global telecom players out of the Indian industry. Even in 3G auctions, the country may not attract the international companies, he added.

The discussion will continue on Monday.

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