New Delhi: ASSOCHAM has urged all Honorable Members of Parliament (MPs) to prioritize key bills, which are highly crucial for economic and social development of our nation. As India’s apex knowledge driven industry chamber, ASSOCHAM’s wish list from the Monsoon session comprises The Companies Bill, The Pension Fund Regulatory and Development Authority Bill and the Direct Taxes Code Bill.
Rana Kapoor, President, ASSOCHAM had communicated to several Ministers to prioritize key Bills, given that there are only 16 working days and over 40 bills to pass during the monsoon session. ASSOCHAM has also committed its fullest support post enactment of these bills in creating awareness and on ground implementation with all stakeholders.
Considering the significant social and economic impact of these bills, it is likely that the Government and the Opposition will work together in getting them passed. In this context, the decision by the NDA-led Opposition to not disrupt parliamentary proceedings during the Monsoon Session is very important and encouraging.
In a note to key senior ministers, ASSOCHAM President, Rana Kapoor stressed on the following bills that will also help achieve economic security of India, which is in line with ASSOCHAM’s vision for 2013-14:
1. The Direct Taxes Code Bill, 2010
The Direct Taxes Code (DTC) will help India develop an effective and equitable taxation system by consolidating all laws relating to income-tax and wealth-tax. By providing stability in tax regime based on well accepted principles of taxation and best international practices, DTC can enhance economic efficiency of India’s tax system and also increase the tax-GDP ratio, which stood at 5.57% in FY13.
2. The Pension Fund Regulatory and Development Authority Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008
The Pension Fund Bill will allow foreign investments up to 49% in the Pension sector and also set up a statutory authority to regulate pension funds. Raising the FDI limit in the insurance to 49% and allowing foreign re-insurers will be crucial to developing the sector as a capital infusion of over USD 12 billion is estimated in the insurance sector over the next five years. Passing the Pension and Insurance Bills will give a boost to implementing progressive financial sector reforms in the country.
Speaking on the occasion, Rana Kapoor, President, ASSOCHAM stated, “This monsoon session is extremely crucial from both investor and industry sentiment perspective. While there are 3 key bills that ASSOCHAM has been lobbying for, in addition to the Companies Bill, given the wide social and economic impact the outcome of the monsoon session will also be viewed symbolically, and is likely to determine India’s economic revival over the next 6-12 months. To help bring the economy back on the 8%-plus growth trajectory, adequate measures need to be taken by all political parties to ensure a smooth functioning of both the houses”.