Thursday, March 17 2005 21:56 Hrs (IST) - World Time -

New Delhi: Finance Minister P Chidambaram tonight (March 17, 2005) gave enough indications in the Lok Sabha of a roll back of the controversial proposal for tax on cash withdrawals in banks.

"I am sensitive to the concerns expressed by members. No tax has been imposed. Only it has been proposed. You will dispose it of. Someone referred to the savings account. You will get good news when we discuss the Finance Bill," Chidambaram told the House winding up a three-day general discussion on the Budget for 2005-06.

Though he did not specifically refer to the proposal for 0.1 per cent tax on cash withdrawals from banks above Rs 10,000, he hinted at it by saying the Prime Minister had asked him why there was so much uproar in the House when he had proposed it during the budget presentation.

Chidambaram said, "I told the Prime Minister Sir, I was applying your's and mine austere standards when I had made the proposal."

In an apparent reference to other tax proposals including the Fringe Benefit Tax on corporates, he said, "I have not dealt with any aspects of the Finance Bill. That does not mean I am not sensitive to the concerns expressed by you. I will deal with this in greater details when we take up the Bill."