Exemption limit for income tax be hiked to Rs two lakh: TUs

New Delhi, Feb 21 (UNI) The Central Trade Unions (TUs) today demanded an increase in the exemption limit for income tax to Rs two lakh, rescinding of the New Pension System and further hiking the rate of interest on Special Deposit Schemes so as to pay 9.5 per cent interst rate on EPF.

It also asked to provide social security and health care schemes for 37 million unorganised workers.

Ahead of the Budget session, which begins on Friday, the TUs including the RSS-affliated BMS also urged the government to take urgent steps to contain inflation which hit the poor and the salaried classes the most.

Talking to UNI, the TU leaders said to withdraw ban on recruitment in government departments, autonomous institutions and the PSUs. The budget should have also adequate provisions for investments in agriculture and infrastructure.

AITUC Leader D L Sachdev said the rate of interest of the Special Deposit Scheme (SDS) wherein over 80 per cent of the EPF fund is invested also be raised so as to enable over 40 million fund subscribers to get at least 9.5 per cent rate of interest.

Mr Sachdev, AITUC National Secretary also took a strong view of the government reportedly re-opening the proposal to levy tax on savings totally tax-free instruments like the Public Provident Fund and equity linked saving schemes offered by mutual funds. It might be done by introducing a new tax called exempt-exempt-tax, they feared.

Mr Sachdev said, ''the budget should provide more funds to tackle the problems of sickness and crisis in Khadi and village industries.'' Besides rescind the New Pension System aimed at privatising of social security and withdraw the Pension Fund Regulatory and Development Authority Bill, he added.

BMS General Secretary Girish Avasthi suggested the setting up of the Workers Fund to run the EPF so that the subscribers get more rate of interest.

The BMS leader urged the Finance Minister to meet the 'legitimate' demand for grant of interim relief of Rs 1,000 per month in the wake of government announcement of setting up of the sixth Pay Commission.

CITU President M K Pandhe also called for enhancing the coverage under the EPF act covering all age earners and hiking the income limit to Rs 10,000 on par with the ESI Scheme.

Mr Pandhe demanded budgetary allocation of six per cent of the GDP for education and 2-3 per cent for health care. He also suggested the enhancing of rates of personal and coporate income tax for those in the higher income brackets, streamlining the tax enforcement machanism and curbing tax evasion.

The CITU President stressed the need for mergering the 50 per cent of DA with the basic pay for PSU employees.

Endorsing Mr Pandhe's argument, HMS Secretary R A Mittal said the budget should also have provisons to introduce wealth tax in view of the enormous accumulation of wealth by a tiny segment of the population and introducing Inheritance Tax on high value properties bequethed and reviewing the Double Taxation Avoidence Agreements to curb speculative profiteers evading tax.

He also urged the Finance Minister to end the 'fiscal profligacy' of showering scores of incentives and concessions to the Corporate Industrial Houses, the MNCs, FDIs, FIIs and SEZs.

UNI