Tax less pension, OPS reinstatement and formation of 8th Pay Commission, government personnel said ‘Mann Ki Baat’
New Delhi| The Finance Ministry is busy preparing to present the Union Budget in Parliament. Suggestions are being taken from economic experts. Central employee organizations have also conveyed their ‘Mann Ki Baat’ to the government. A letter has been written to Finance Minister Nirmala Sitharaman recently on behalf of the Central Trade Unions, which include INTUC, AITUC, HMS, CITU, TUCC, SEWA, AICCTU, LPF and Sectoral and Federations. About a dozen demands have been included in this. The demands placed before the government also include tax-free pension, restoration of OPS and formation of 8th Pay Commission with immediate effect. Not only this, opposition to privatization, regular recruitment and reduction in GST rates on essential food items, medicines and medical insurance, this request has also been made to the government.
Not considering a suggestion from trade unions
Employee organizations allege that they are not talked to for pre-budget discussions. We are forced to say, not a single suggestion of the trade unions was considered while preparing the budget or any policy in the previous governments. It is going to be a decade since the Indian Labor Conference (ILC) was called. The main recommendation of the only ILC held under the NDA government was to implement the recommendations of the first ILC. Completely unanimous recommendations fell on deaf ears. The suggestions and demands of the employees continued to be ignored. The notification, published by the Ministry of Labor and Employment, drastically reduces the rates of penalty imposed against employers defaulting in EPF. This has been done keeping the Central Board of Trustees of EPFO in the dark and without any consultation with the unions. One percent of people own 40.5 percent of India’s total wealth, while the bottom fifty percent of Indians own only three percent of the wealth. Such growing inequalities and deepening poverty are directly negatively impacting growth and employment-generating investment generation. It is expected that concrete measures will be seen in the upcoming Union Budget to increase the purchasing power of the people. CTU has put forward many concrete suggestions to the government for the budget.
Government should raise resources through inheritance tax
The burden of GST on essential food items and medicines is being passed on to the general public. Instead, the government should increase corporate tax and wealth tax. The government should focus on mobilizing resources by implementing inheritance tax. For decades, corporate tax rates have been unjustly cut. With the increase in the burden of ‘indirect taxes’ on the common people, a completely ‘regressive tax’ structure has been created. This should be corrected in the interests of fairness, equity and propriety. A one percent inheritance tax with a ceiling on the extremely rich can also become a means of collecting large amounts of money in budget receipts. This amount can be used to finance education, health and other social sectors. Apart from this, the government should cut GST rates on essential food items, medicines and medical insurance with immediate effect.
The income tax exemption limit on salary should be increased
The income tax exemption limit for salaried class on their salaries should be increased. The extent and eligibility of EPFO and ESI contributions should be significantly increased. Gratuity calculation criteria should be revised. The period of one month should be extended to ensure higher gratuity payment to all workers/employees on retirement. The limit on gratuity should be removed. Pension should not be taxed. A ‘Social Security Fund’ sponsored by the Central Government should be established for unorganized workers and agricultural workers. This includes a minimum pension of Rs 9000 per month for DA and other medical and educational benefits. India needs to ratify ILO Conventions Nos. 187 and 155 on OSH, which are now included in the Fundamental Principles of Rights at Work. Implementation of Convention 181 must be ensured. Monetary benefits under existing schemes will have to be increased, as they are insufficient. As promised at the time of implementation of GST, an equivalent fund should be provided to compensate for the losses caused by repeal of the Beedi Cess Act. ESI should be extended to workers in the unorganized sector. Small farmers/agricultural workers/sharecroppers should also be included under Kisan Samman Yojana.
Employment of Agniveer, Ayudhaveer and Koylaveer should be stopped
All existing vacancies in Central Government Departments and PSUs should be filled immediately. The ban on employment generation should be lifted. The practice of contracting and outsourcing will have to be stopped. Instead, regular employment will have to be ensured. Equal pay for equal work should be ensured. Agniveer, Ayudhaveer, Koylavir and other such jobs should be stopped. The government should start regular employment in all those sectors in their place. The scheme of apprenticeship funded by the government for the benefit of private employers in the name of Skill India should be completely replaced by the statutory obligation of private employers. This allows them to include the requisite number of trainees in the establishments concerned with clear provision for phased placement. All benefits/concessions/discounts/tax-deductions being given to corporates in regular employment should be linked to additional employment generation with a stringent accountability-setting mechanism. Allocation for MNREGA increased with the aim of ensuring 200 days of work with statutory minimum wages.
Integrated Pension Scheme cannot replace OPS
The new pension scheme should be abolished. Integrated Pension Scheme cannot replace the old pension scheme. Benefits The defined old pension scheme must be restored. Increase the EPS-95 from Rs 1000/- to Rs 9000/-, linking it with DA. There should be budgetary allocation for this. The 8th Pay Commission should be formed immediately. Labor codes should be repealed. 29 All 4 Labor Codes enacted repealing labor laws be repealed. Minimum wages of at least Rs 26000 per month with indexation should be fixed in line with the consensus recommendation of the Indian Labor Conference. Privatization of PSUs and government sector should be stopped. Privatization of PSUs and its latest format – National Monetization Pipeline Process should stop immediately
