RAISE YOUR VOICE OF PROTEST AGAINST THE RETROGRADE NEW TAX CODE

UNION BUDGET HAS BEEN PRESENTED TODAY BY HON'BLE MINISTER OF FINANCE

INCOME TAX PROPOSALS ARE HARD HITTING AGAINST THE LOW SALARIED EMPLOYEES AND WORKERS - NEW INCOME TAX CODE IS TO BE IMPLEMENTED FROM 1.4.2010

Employees with an annual income of 1,60,000 alone are exempted from Income Tax - Over and above the amount, 10% Income Tax will be charged upto the ceiling of 5,00,000 annual income. The only minor change the Hon'ble Finance Minister has made to the earlier proposals of New Tax Code is that instead of 3,00,000 ceiling 5,00,000 ceiling is fixed for 10% Tax Bracket. This means even the lowly paid workers and employees in the Central Government Departments will have to pay tax of 10% above their annual income of 1,60,000/-. Even though the 20,000 infrastructural investment is exempted from tax over and above the savings of 1,00,00, We know that the poorly paid employees have no scope of savings from within their meagre income. Middle Class employees of Central Government Services are attracted to more taxation after the 6th CPC and this tax code only trying to extract tax from them.

On the other hand the Tax Relief to the higher bureacracy is very striking! The Finance Minister has said that 60% of tax payers would be benefited! yes - High wage earning top IAS line Officers are given a big relief by reducing their tax level by bringing their income upto 8 lakhs into 10% and 20% brackets and only over and above 8 lakhs income would invite 30% tax from now on. This is really a tax relief budget for high income group and hard hitting one for the low wage earning employees and middle class employees.

HON'BLE FINANCE MINISTER HAS TAKEN CREDIT FOR SUCCESSFULLY WEATHERING THE FINANCIAL CRISIS IN INDIA - But his announcement that disinvestment to the tune of 25,000 Crores would be done clearly shows that the Government did not assimilate the reasons for the relatively less impact of financial crisis on Indian Economy. All know very well that the existence of strong public sector financial institutions alone saved India from the depth of crisis but the disinvestment proposals clearly show that the Government has not taken the lessons of international crisis properly and succumbing to the pressures of neo-liberal forces.

Corporate world has welcomed the budget and it is only expected as the present budget is mainly a welcome relief to the corporate world!

The problem of price rise is alarming and the budget speech of Hon'ble FM only express hope that prices would come down! We are not able to understand any comprehensive steps contemplated by the Union Budget to control the prices. On the other hand the rise in cost of petrol and diesel coming effect from tonight itself is alarming! This will only escalate price rise and inflation further. The enhancing of central excise will also lead to further price rise. The lip-sympathy shown in the Presidential Speech against the price rise remains only on paper and the budget is working for increasing further inflation.

Let us raise our voice clearly and loudly - Hold Demonstrations as per the call of the Confederation of CG Employees & Workers on 10th March 2010 demanding modification of retrograde tax code; dropping of PFRDA Bill aiming privatisation of pension; and against the alarming price rise.








--
K.Ragavendran
Secretary General NFPE