After a strong resistance both inside and outside parliament, Arun Jaitley, the finance minister has decided to withdraw the proposed budget of tax on the Employee provident fund.
Currently, there is no tax on withdrawal from Employee Provident Fund. In the new budget, the government proposed that withdrawals up to 40% of the accumulated fund will be tax-free, more than that will be taxed.
“In view of the representation received, the government would like to do a comprehensive review of this proposal and therefore I withdraw this proposal,” said Arun Jaitley, in a speech in the Lok Sabha.
“I felt middle-class people were being hurt by the government, so I decided to put some pressure on the government, my pressure did work”. Rahul Gandhi, the Congress vice president, he further said “The attempt to tax the safety net of millions of hard working, middle-class people was morally wrong and shows this government’s anti-people mindset.”