I wish to draw attention about proposal of taxing of withdrawals from PPF scheme.Does the same apply to EPF scheme for government and organised sector employees too? Secondly, how any government can tax a Provident Fund accumulation? This practice is contradiction of the very name and purpose of the scheme.Governments cant start taxing each and everything in country in name of requirement of funds.Instead of increasing the interest rate on PPF to atleast 9%, government is instead trying to rob
middle class people who save some money for old age and for discharging social responsibilities. All people must oppose these moves of government.I think Chindamaram has gone crazy and is blindly
following US models which not at all suit India's socio economic conditions. The main drain on Indian economy is the corrupt and expenmditure savvy politicians and the lethargic, corrupt and low productive public servant cadres.Not only the government expenses have to be reduced by half but also every year 10% of them should be shown door after 10 years of service so that fresh people can find some jobs and corruption is contained in the country. Not only public services are big drain on meagre funds but indirectly several time more money is siphoned off by colluding with businessmen and contractors by accepting bribes.Huge money thus goes into coffers of bureacrates-businessmen nexus.
We are not willing to pay more and more taxes in different names for such corrupt system.Why should we? It is high time politicial representatives of people start acting with responsibility and stop taxing everything.A well defined social security and public health system should be installed in the country
and allocation should come from money saved from public expenditures and government servants burgeoning compensation paxkages and allowances.To start with , all government servants' wages should be frozen for next 5 years as they are already drawing 15 times of average per capita income. Add to this almost equal amount earned by them through bribes.
I think all members of public should send protest messages to Prime Minister and Chidambram and their respective Members of Parliament to stop this tax and all similar unfair taxes. Time to show door to Manmohan and Chidambaram like psudo economics experts trained by harvard and World bank ( I mean brainwashed)
Prof R K Gupta