BJP Sikkim President meets Union Finance Minister to address taxation concerns

D.R. Thapa, the State President of the Bharatiya Janata Party (BJP) in Sikkim, held a crucial meeting with Union Finance Minister Nirmala Sitharaman on September 27. The focus of their discussion was a pressing issue related to the expansion of the term 'Sikkimese' in Section 10(26AAA) of the Income Tax Act, 1961, which was introduced through the Finance Act, 2023.

During the meeting, D.R. Thapa presented a Memorandum of grievance highlighting the concerns arising from the recent amendment. He underlined how the altered definition of 'Sikkimese' could potentially dilute the special provisions guaranteed to the Himalayan state under Article 371F of the Indian Constitution. This provision has been pivotal in safeguarding Sikkim's unique status.

The Memorandum specifically calls for the establishment of comprehensive guidelines and rules to supplement the expanded definition of 'Sikkimese.' This measure aims to ensure that tax exemptions are granted exclusively to those individuals who genuinely qualify under the new criteria. D.R. Thapa emphasized the need for a thorough review of the recent changes to the Income Tax Act, with a focus on addressing any unintended consequences that may arise due to the altered definition.

The Memorandum highlights the historical context by mentioning the Constitution of India (Thirty-sixth Amendment) Act, 1975, which inserted Article 371F as a special provision for the State of Sikkim. This Article, particularly clause (k), explicitly states that all pre-existing laws of Sikkim will continue to be in force and will be protected by Article 371F of the Indian Constitution. As a result, the old law governing domicile, known as the Sikkim Subject Regulation 1961, remained in effect. Indian citizenship for Sikkimese individuals was determined based on their possession of a Sikkim Subject certificate.

Union Finance Minister Nirmala Sitharaman attentively listened to the concerns raised in the Memorandum during the meeting, demonstrating a willingness to engage with the issue at hand.