Lok Sabha Passes MSME and Tax Bills Amid Protests

The Lok Sabha passed the Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill, 2026, and the Taxation and Other Laws (Amendment) Bill, 2026, on August 7. The MSME legislation replaces the 2006 Act by establishing a national digital registration platform, allowing state governments to create Facilitation Councils, and replacing certain criminal convictions with graded penalties. The taxation bill, passed via voice vote without discussion, introduces changes to boost manufacturing and investment.

Proceedings were heavily disrupted by Mallikarjun Kharge and other opposition members protesting police action taken on July 20. Kharge and MP Priyanka Gandhi Vadra demanded a statement from Union Home Minister Amit Shah regarding the incident. Parliamentary Affairs Minister Kiren Rijiju rejected these demands, asserting that the opposition cannot dictate when a minister attends the House and denying that Rajya Sabha Chairperson C.P. Radhakrishnan had directed Shah to appear.

Beyond the passed legislation, the House scheduled the introduction of several other bills, including the Kashmiri Pandits (Recourse, Restitution, Rehabilitation and Resettlement) Bill, 2025, and the Fishermen (Protection and Welfare) Bill, 2024. Following the disruptions, both Houses of Parliament were adjourned until August 10. Opposition leaders planned a further protest at Makar Dwar to address the July 20 police action and alleged irregularities in Ram Mandir donations.