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CPI opposes move to cut tax rate
November, 09th 2006
The CPI today opposed any move by the UPA regime to lower income tax rate. CPI MP Gurudas Dasgupta said today that his party would oppose any move that would mean less revenue.
 
This came a day after Finance Minister P Chidambaram said that there was scope for further moderation (of income tax rate), indicating the government's willingness to lower it to encourage greater compliance.
 
The theory that lower tax means grater compliance is outdated. They (government) are doing it to woo foreign funds...We are opposed to it because we need additional one lakh crore for developmental schemes, Dasgupta told reporters.
 
Meanwhile, the Union Labour Ministry today decided to constitute a study team on violation of labour laws.
 
The team consisting of Members of Parliament, Labour Secretary and other officials will visit Himachal Pradesh, Haryana, Rajasthan and Tamil Nadu in this connection shortly.
 
Labour Minister Oscar Fernandes agreed to set up this team in response to a demand from AITUC leader Gurudas Dasgupta at the Consultative Committee meeting today.
 
CPI(M) MP Chittabrata Majumdar, who also attended the meeting, raised the issue of poor service conditions and labour law violations in the information technology sector.
 
The minister was said to have responded positively to senior CPI(M) leader's complaints but there was no concrete decision on this issue. The labour minister was also learnt to have agreed to invite the trade unions at the State Labour Ministers conference.
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