RSS-affiliated Bharatiya Mazdoor Sangh (BMS) has opposed the government’s move to tax the provident fund money, calling it “disgusting” and a gross injustice to workers.
“The government move is disgusting and we condemn it strongly. We will try to pursue the government to roll it back,” BMS president BN Rai said.
The government in its budget on Monday made a provision for taxing 60% of the accumulated PF at the time of withdrawal. This, finance minister Arun Jaitley said, will bring parity among various pension plans.
“I believe that the tax treatment should be uniform for defined benefit and defined contribution pension plans,” he said in his budget speech.
Rai said the government has dealt a blow to the scheme that was relied upon by workers as security in old age. “They used the money for building a house, education of their kids or marriage. Now, with government plan to tax the money, workers will lose considerable amount of their own money,” he said.
Rai said if the attempts by the BMS fail to pursue the government to roll back the plan, it will consider mobilising other trade unions for a stir. The plan also attracted criticism from other unions. DL Sachdeva of the All India Trade Union Congress said the move was an attempt by the government to favour corporates. “In the name of giving it parity, government will tax the PF money and divert it for the corporates,” he said.