CPI(M) demands withdrawal of 12 per cent tax on postal services

New Delh, June 23 (UNI) Irked by the government's recent decision to levy 12 per cent service tax on postal services, the CPI(M) today demanded the Congress-led coalition to withdraw the ''fresh burden'' on the common people.

''According to my information, this has already been implemented on all types of postal services, including money orders, postal life insurance and speed post among others,'' CPI(M) Polit Bureau member Sitaram Yechury said in a letter to Prime Minister Manmohan Singh.

It will badly affect those who depend on the remittances sent by their earning member of the family.

Currently a 12 per cent service tax and additional two per cent education cess are being levied on these services, Mr Yechury said.

The CPI(M) senior leader said the Left has articulated the need to widen the tax net to mobilise more resources, but it should be done in a way so that it does not affect the weaker sections of the society.

''Widening of the tax base should target those who can afford to part with their wealth rather than targetting the poor,'' the letter added.

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