I endorse Anil Kumar’s view in his letter to the editor, “EPF not a freebie” (March 4). The tax on Employees’ Provident Fund should be challenged not only because it is unethical and unilateral, but also because it is a retrospective tax. A government cannot make people obey one set of laws and then unilaterally change the terms of past contributions.
This is not the first time the government has short-changed the middle class and the salaried class. The Public Provident Fund is a scheme where savings are locked in for 15 years. The interest rate may be changed, but only for prospective credits. The past balance must continue to earn interest at the old rate. In fact, the interest rate on long-term savings must be linked to the inflation rate. Only then will the government do something about it.
The government’s desperate bid to earn revenue is matched by it cowardice not to tax the rich agriculturists. That’s because most of them are sitting around the finance minister or controlling the votes in their constituencies. The salaried class is the only section that cannot stand for elections.
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The Editor, Business Standard
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This is not the first time the government has short-changed the middle class and the salaried class. The Public Provident Fund is a scheme where savings are locked in for 15 years. The interest rate may be changed, but only for prospective credits. The past balance must continue to earn interest at the old rate. In fact, the interest rate on long-term savings must be linked to the inflation rate. Only then will the government do something about it.
The government’s desperate bid to earn revenue is matched by it cowardice not to tax the rich agriculturists. That’s because most of them are sitting around the finance minister or controlling the votes in their constituencies. The salaried class is the only section that cannot stand for elections.
T R Ramaswami, Mumbai
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number