Congress protests for withdrawal of EPF tax proposal

March 07, 2016 08:39 pm | Updated December 04, 2021 11:03 pm IST - New Delhi

Congress on Monday staged a protest here seeking immediate reversal of the Centre’s proposal to tax 60 per cent of Employees’ Provident Fund (EPF) at the time of withdrawal and warned of escalating pressure if the demand was not met.

“The move to tax EPF will be a terrible blow to six crore employees covered under the EPF Act. The BJP-led central government is playing with their future. The proposal must be rolled back immediately,” Delhi Congress chief Ajay Maken said at the protest at Jantar Mantar.

Maken said, according to the budget proposal, an employee will have to invest 60 per cent of the PF in annuity “as per wishes of government” if he does not want to pay tax on the amount he receives at the time of retirement.

He claimed the move was aimed at helping insurance companies, particularly private ones. “Salaried people depend on their salaries for their living and on retirement they depend on their EPF savings for their daughter’s marriage and for housing, and if tax is levied on EPF, it would be a big blow to salaried class,” he said.

The Union budget for 2016-17 proposed taxing 60 per cent of withdrawals from the Employee Provident Fund (EPF) on contributions to be made after April 1, unless the sum is reinvested in pension product such as an annuity.

Referring to Congress vice-president Rahul Gandhi’s remarks on the one-time compliance window on black money, Maken said Congress workers will “fully” support him in “his fight to protect interests of weaker sections”.

“Congress knows how to rule and its workers will also take to streets if the situation demands to protect interests of common people,” Maken said.

Taking a swipe at the Modi government over the one-time compliance window announced in the Union Budget, Rahul had described it as a “Fair and Lovely” scheme aimed at turning black money into white.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.