The BJP, has demanded overhaul of the proposed direct tax code before it is introduced. A BJP delegation, led by Lok Sabha opposition leader Sushma Swaraj, met FM Pranab Mukherjee on the issue on Tuesday.

The party believes that the code“runs counter to the principles” of the Indian economy.

It believes the proposed tax code would increase tax burden on the small and middle-income groups, and discourage savings. The 12-page memorandum said, “The BJP believes that any direct tax law has to be equitable. Tax burden on citizens should be based on their ability to pay. It should promote economic growth.”

Other BJP leaders in the delegation included Arun Jaitley and S S Ahluwalia.

Terming the code a blind pursuit of ideas and concepts from the West, the party said, “In one stroke, some of the fundamental principles that constitute the core of our present taxation policy and have stood the test of time have been jettisoned. This bias and prejudice is evident in the way the code seeks to discourage savings and capital formation in the hands of the taxpayers,” it said.

The BJP’s stand on the tax code assumes significance as it comes weeks before Mukherjee unveils budget on February 26.

The BJP said, “It creates a make-believe impression that great relief from tax burden awaits the common man but does exactly the opposite, that is tax the smaller taxpayers more and grant relief to the big taxpayers.

The reason for BJP’s ire is the reduction of the tax incentives to savings and withdrawal of the fringe benefit tax.

It sought increase in minimum exemption limit for individual taxpayers to at least Rs 3 lakh, Rs 3.5 lakh for women and Rs 4 lakh for senior citizens.