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Slams Direct Taxes Code as regressive
September, 07th 2009

The CPI(M), whose pitch for an alternative economic policy during the 2009 Lok Sabha elections received a drubbing, has slammed the new Direct Taxes Code, unveiled by Finance Minister Pranab Mukherjee last month, as regressive.

The politburo of the CPI(M), that met in New Delhi over the weekend, opposed the Code for its proposed benefits to the rich section of society. Persons earning above Rs 10 lakh annually get a cut in their tax rates, corporate taxes are being reduced from 30 to 25 per cent and there is a further dilution of the wealth tax. This at a time when big business has earned enormous profits and the wealth of the richer sections has increased substantially, the politburo concluded.

It also raised the pitch against the economic policy of the second UPA, as it noted that the governments record in the first 100 days of its tenure has confirmed that it will pursue the same neo-liberal policies.

It (government) has announced that it will further liberalise foreign direct investment in various spheres, go in for disinvestment of the profitable PSUs... and provide for further tax concessions to the corporate sector, the politburo said.

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