Bjp Opposes Amnesty Scheme

The BJP yesterday opposed the idea of giving amnesty to economic offenders in the name of the Voluntary Disclosure of Income Scheme (VDIS). It criticised Union finance minister P Chidambaram for creating a feeling among such offenders that they could expect amnesty from the government after committing a crime.

The VDIS is Chidambarams biggest failure. Through this scheme, he has send a strong signal to hoarders of black money that they can expect mercy, BJP spokesperson and former Union finance minister Yashwant Sinha told the Business Standard.

Sinha opposed the governments policy of allowing amnesty to tax evaders till they are detained by the competent authority. He was reacting to the problems faced by the Enforcement Directorate (ED) in arresting some the countrys prominent businessmen for Foreign Exchange Regulation Act (FERA) violation.

 

Although the ED has been pursuing some of these case for the last 10 years, the offenders may get off the hook if they succeed in evading detention and manage to pay 30 per cent of the amount involved under the VDIS.

The moment a competent authority initiates proceedings against anybody, who has evaded tax, he should not qualify for any amnesty, Sinha said. It is shocking that such persons are being given amnesty under the present scheme. Also, the punishment for such offenders should be exemplary, he said.

Sinha said that the BJP had opposed the VDIS at the time of its inception. The partys objections were on two counts; One that the scheme was unethical as it was meant for people who indulged in malpractices. The second being the partys demand that the government should take a comprehensive view on ways to prevent formation of black money, he said.

The party also objected to the fact that the VDIS allowed collection of only 30 per cent of the money as against 35 per cent of the prevailing rate. We said this was like putting a premium on dishonesty.