Finance Minister, P. Chidambaram on Friday said that he had been assured by majority of the political parties including the principle opposition party that they would support him in the passage of the Insurance Bill that aims at raising the foreign direct investment (FDI) limit in insurance sector from 26 per cent to 49 per cent.
Addressing a press conference here, Mr. Chidambaram said the government had managed to secure the support of principle opposition party (BJP) in support of the Bill. "The opposition parties have promised me they will pass the Insurance Bill. Most parties, including the principal opposition party, have expressed their support for insurance bill. I hope with majority support, if not unanimous support, we will be able to pass the insurance bill,’’ he added.
The Insurance Bill seeks to raise FDI in insurance sector to 49 per cent has been pending in Rajya Sabha since 2008. The Standing Committee, to which it was referred earlier, has already given its report to the Parliament.
Mr. Chidambaram further exuded confidence that the government would be able to pass about a dozen Bills, including that on securities market, in the forthcoming session of Parliament. The SEBI Laws Amendment Bill seeks to give more powers to market regulator SEBI.
On the Direct Taxes Code (DTC) Bill, he said the Finance Ministry will move a supplementary note to Cabinet making some more official amendments to the DTC Bill. "It is then for Cabinet to take a call if they give us the approval for introduction of the official amendments in the Winter Session and take up the DTC Bill,’’ he said.
The final draft of the DTC Bill, which has to be vetted by the Cabinet, keeps the income tax exemption limit unchanged at Rs. 2 lakh for individuals. It proposes to introduce a fourth slab with a 35 per cent tax rate for those with an annual income of over Rs 10 crore.
At the same time, Mr. Chidambaram sounded a note of caution and asked investors to guard against excessive exuberance. "The markets seem to be very happy. More than anyone else, the markets seem to welcome the RBI and government measures. But I would caution investors against excessive exuberance,’’ he remarked.
