Tax the rich, says Citu’s Budget wishlist again

NEW DELHI; Reflecting the tone of the Left wishlist for the Budget, CPM’s trade union wing, Citu, is toeing the familiar ‘tax the rich’ line. In finance minister P Chidambaram’s ritualistic pre-Budget meeting with central trade unions on Wednesday, Citu will seek an end to ‘fiscal profligacy’ of giving incentives or concessions to corporate industrial houses, MNCs and SEZs.

Citu wants the government to stop participatory notes in share market transactions, enhance the rate of personal and corporate income-tax for those in the higher income brackets and review Double Taxation Avoidance Agreements to curb speculative profiteers evading tax for resource mobilisation.

Citu is reiterating its demands for introducing wealth tax, recovery of tax arrears, reintroduction of long-term capital gains tax, increasing rate of securities transaction tax, increasing tax on luxury goods, imposing tax on lavish spending, unearthing black money and bringing under the service tax net ITeS and outsourcing sectors.

In its 25-point memorandum to make the budget “people-oriented and worker friendly”, Citu is seeking “effective” measures to contain price rise. It wants the government to ban speculative forward trading in essential commodities and universalisation of PDS.

The list also proposed at least 25% allocation of government revenue for social sector covering health, education and housing. For the agri sector, it suggested massive public investment and ensuring remunerative prices for agricultural produce. Citu voiced TU demand for budgetary allocation to the extent of 3% of GDP for the unorganised sector workers’ bill.

The Left trade union reiterated the demand for raising the income tax exemption limit to Rs two lakh per annum. Seeking withdrawal of ban on recruitment in government departments, autonomous institutions and PSUs, Citu demanded budgetary support for revival of sick CPSUs. Besides, it wants budgetary support for addressing the problem of sickness and crisis in traditional industries such as jute, textile, handloom, coir, beedi, khadi and village industries.

Citu is also asking the government to agree to the central government employees’ demand for grant of interim relief and take immediate steps to merge 50% of dearness allowance with pay in the case of PSUs.