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CPI for restoration of capital gains

Left leaders want to restore capital gains tax, rationalise corporate tax exemptions and export incentives.

india Updated: Feb 11, 2006 20:43 IST
Press Trust of India
Press Trust of India

Charging UPA top brass with aligning with industry chambers and not paying heed to coalition partners' demands, Left leaderson Fridaysaid the forthcoming budget should restore capital gains tax, rationalise corporate tax exemptions and export incentives.

"We have a complaint -- Prime Minister, Deputy Chairman of Planning Commission and Finance Minister are always in the company of CII, Ficci and Assocham," CPI leader AB Bardhan said at a pre-budget conference of AITUC.

He said the government reduces tax rates on the demands of industry chambers but is not prepared to pay heed to Left parties who have demanded imposition of new taxes and hike in some of the existing taxes.

Presenting the CPI's budget wishlist, he said government should mobilise additional resources by asking PSUs to pay a small portion of their cash reserves, restoring Capital Gains Tax for most investors, strengthening Securities Transaction Tax, a nominal tax on FII outflow (Tobin Tax), rationalisation of corporate tax exemptions and export incentives.

He also pitched for inheritance tax beyond a property value, and luxury tax on expensive cars and consumptions.

Bardhan said gross budgetary support should be hiked by Rs 52,000 crore, an allocation of Rs 5,000 crore for reviving rural cooperatives, Rs 7,500 crore more for health and Rs 3,000 crore for social security for unorganised workers.

He said the allocation for education should be scaled up from the present 3 to 4.5 per cent in this budget and 6 per cent in 2007-08.

CPI and AITUC leader Gurudas Dasgupta said, "the next budget has to be a people's budget, a declared crusade against poverty and unemployment."

First Published: Feb 10, 2006 15:36 IST