Union Budget 2013: Crorepati MPs grin and bear super-rich tax

NEW DELHI: In the end, the FM did deliver on his threat to tax the super rich — 42,800 individuals with declared incomes of more than Rs 1 crore. This, going by affidavits scanned by the Association of Democratic Reforms, includes 315 crorepatis in the current Lok Sabha.
Yet, hardly anybody in the House took a deep breath when P Chidambaram announced the 10% surcharge.That was perhaps because none was keen to stand out as one affected by the measure. Lok Sabha’s crorepati club has doubled from 156 in 2004.
There was some action before the FM arrived. Congress chief Sonia Gandhi was in her seat well before the benches filled up and some astute MPs were quick to get in a word or two with her. A state chief at daggers drawn with his CM touched her knees, seeking protection rather than attention.
The cameo before the main event was a telling reminder of UPA’s real power centre, without whose backing Chidambaram’s confident espousal of growth wouldn’t be possible. Chidambaram arrived on the dot at 11am. He began speaking as parliamentary affairs minister Kamal Nath slipped in next to a now crowded bench that also seated agriculture minister Sharad Pawar and Sonia.
In comparison to railway minister Pawan Bansal, who wound up his speech early because of protesting MPs, Chidambaram offered no provocation to states like Bihar, UP and West Bengal, whose contingents are ever ready for a scrap.
Chidambaram did hold out an olive branch to Yashwant Sinha, his bitter critic in the BJP. The FM said he will consider the views of the standing panel headed by Sinha on the Direct Tax Code and work closely with him to usher in a new tax regime. It is a private joke in political circles that the Sinha-Chidambaram bad blood is costing the economy a couple of percentage points. If the FM manages to repair relations, it will be a canny move.
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