Re-introduce tax on capital gain in equity: Karat tells FM

Coimbatore, Jan 23 (UNI) Communist Party of India (Marxist) General Secretary Prakash Karat today asked Union Finance Minister P Chidambaram to re-introduce tax on capital gain in equity in the coming budget to stabilise the share market in the country.

Addressing a press conference here, he said the tax on capital investment gain would generate more revenue to the Government, besides stabilising the share market. This tax had been abolished in 2004.

To a question, the Marxist leader said his party was concerned about the continuous price rise of essential commodities, especially food items. Besides, the Centre was planning to hike the price of petroleum products, further affecting the common man.

Strongly opposing the proposed hike in petrol price, he suggested that the Union Government reduce taxes and excise duties on petroleum products and forego the additional revenue.

Mr Karat called for the immediate implementation of the Sethusamudram Shipping Channel project, which had been stalled following objections from certain quarters.

Asked about formation of the third front, he said his party would lead the initiative for forming the third alternative. ''This may not be immediate and it is not possible before the Lok Sabha polls.'' To a question on veteran Marxist leader Jyoti Basu welcoming the capitalist system, he said his party wanted to bring in the captalist system within the socialist set up, available only in two States. Though his party was working for the socialist set up through democracy, it was not possible to bring complete socialist set up in one State as majority of the States had capitalist set up.

He said the party would hold a national congress from March 29 to April three in the city. Resolutions including urging the Union Government to bring in an alternative economic policy and reduce tax on petroleum products would be passed at the congress. Over 800 delegates from all over the country, besides veteran leaders from 30 countries, would participate in it.

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