Trade unions resist move

 The Budget proposal to tax Employees’ Provident Fund (EPF) withdrawal is facing stiff resistance from central trade unions, including the RSS affiliate Bharatiya Mazdoor Sangh (BMS).

The issue may become important in the ongoing agitation against labour reforms and is likely to be raised aggressively by unions when they observe a “Nationwide Protest Day” on March 10 to oppose labour law reforms, disinvestment of public sector units and FDI in core sectors.

“The proposal is anti-worker and this is bypassing the Central Board of Trustees, the body which has final authority over taking decisions on Employees’ Provident Fund Organisations (EPFO) related issues,” BMS general-secretary Virjesh Upadhyay told Deccan Herald.

“Employees pay taxes on their salary and the PF is part of it. This is saving, not an income,” the BMS leader added.

 Upadhyay, however, believes that this is not a political decision. He said that bureaucrats seem to have misled the government and hoped that the proposal will be dropped.