Trade unions want exemption limit hiked

CHIDAMBARAM'S PRE-BUDGET PARLEYS

Trade union leaders demanded an increase in basic income tax exemption to Rs 2,50,000 from Rs 1,10,000 and removal of tax on perquisites.

The representatives of eight trade unions who met Finance Minister P Chidambaram as part of his pre-Budget consultations cautioned that 2008-09 was the election year, and asked the government to focus on the working class, who they said had been neglected.

"The income tax exemption should be increased to Rs 2,50,000 and perquisite tax, which is hitting the working class, finished," said MK Pandhe, president of the CPI(M)'s trade union wing, CITU.

Supporting these demands, the Congress-affiliated Indian National Trade Union Congress (INTUC) said "income up to Rs 10,00,000 should be taxed at a lower rate of 20 per cent."

The INTUC said the Budget should focus on the working class, who had been neglected by the finance minister. INTUC Vice-President Ashok Singh said there should be no ceiling on bonus. A large number of employees were still out of the coverage of the Bonus Act, he said.

Gurudas Dasgupta, president of the All India Trade Union Congress (AITUC), CPI's trade union wing, said the pre-Budget exercise was useless as the government was not listening to those who were supporting it.