The Bharatiya Janata Party (BJP)'s oldest ally alleged they "were misinformed". They ratcheted up their hostility against the BJP a notch by demanding the tax on the interest on EPF withdrawals be rolled back. This demand came from senior Sena members of Parliament hours after the NDA meeting. Akali Dal said while they supported the tax, the salary exemption limit to which the tax should apply should be Rs 60,000 not Rs 15,000.
The NDA meeting was called after alliance partners grumbled and complained that the BJP was taking them for granted.
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The government's decision to impose tax on certain PF withdrawals has evoked strong opposition. By the evening, an alarmed government was moved to sound a placatory note, saying the issue was negotiable and a roll back could be considered. Top bureaucrats told Business Standard a roll back was unavoidable. "Some course correction is inevitable," said a senior bureaucrat.
In the morning meeting, Prime Minister Modi sought the assistance of NDA partners to bring farmers under the new crop insurance policy. Finance Minister Arun Jaitley had asserted that it would address agriculture distress.
BJP and its allies said the Budget would help them blunt the opposition's charge that the government had an "anti-farmer" bias. Assembly polls are due in five states, in April-May.