New Delhi: Central trade unions, including the RSS-backed Bharatiya Mazdoor Sangh (BMS), have opposed the Budget proposal to tax EPF withdrawal and contribution made by employers, terming it as ‘an attack on the working class and a clear case of double taxation’.
“This is an anti-worker Budget proposal. Taxing PF means double taxation. PF is deducted from a salary on which workers have already paid tax,” BMS General Secretary Virjesh Upadhyay said.
“Tax should be imposed on new income. PF accumulation is not generated or new income. The finance ministry has encroached upon the authority of the Central Board of Trustees, the apex decision making body of EPFO, which takes a final call on all issues related to EPFO schemes.”
The body is planning to write to Prime Minister Narendra Modi and Finance Minister Arun Jaitley to lodge their protest against these proposals and demand a roll back.
PPF stays on exemption list, only EPF interest to attract tax: Revenue Secretary
All India Trade Union Congress General Secretary Gurudas Dasgupta said, “This is an attack on workers. It leads to virtual double taxation. It is an anti-saving move. It is unfortunate that emergency withdrawals by families have been subjected to taxation”.
“While taxing workers, they have given relief to new start up companies by allowing them not to pay EPF contributions for three years. It is a violation of the EPF Act. On March 10, there will be a nation-wide protest against anti-labour policies of the government, including tax on EPF withdrawals,” he added.
As many as 11 central trade unions have planned to go on a nation-wide strike on March 10 to protest against the government’s unilateral labour reforms and anti-worker policies, including tightening of EPF withdrawals and a proposal to tax them.
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