Left renews demand for increase in STT

Despite the UPA government’s repeated rejections of the Left reiterated reintroduction of the long-term capital gains tax and a hike in the security transaction tax (STT), the CPI(M) is certain to demand its ‘tax the rich’ rhetoric ahead of the Union Budget 2008-09. Sources in the party told FE that such taxation would be inevitable for the resource mobilisation to the UPA’s flagship projects like the NREGS and the social security cover for the unorganised workers. The CPI(M) is likely to demand a flat 0.2% STT on the trading in all financial instruments against 0.017 to 0.25% which varies from product to product. ‘‘Last time we had demanded a flat STT rate of 0.1% on the trading in all financial instruments, including equities, bonds, derivatives and gilts but the government did not heed to our request. An increased STT will only contribute to the resource mobilisation for welfare projects. About 10 states are going to polls in 2008. The government cannot ignore this time,’’ a senior CPI(M) leader told FE. According to the leader, the Left will also renew its demand for reimposition of a long-term capital gains tax of 15%. ‘‘We are busy with our conferences. But considering the last of the UPA government, we will ask them to stop going for drastic liberalisation drive ahead of the elections,’’ he added. The Left wishlist will also include more budgetary allocation for health and education sectors. Demands for more aids to implement the Sachar panel report for the welfare of Muslims and adequate funds for the security of unorganised sector workers will also figure in the wishlist. ‘‘We will also demand a complete revamp of the tax structure in the oil sector so as to balance the oil price,’’ the leader added. The CITU, CPI(M)’s trade union arm, in a discussion with finance minister P Chidambaram recently, had asked for effective measures to check the price rise and inflation. They also demanded a ban on forward trading in essential commodities. The finance minister was also told to ensure ‘‘at least 25% of revenue for social sector, covering health, education and housing. ’’ – www.financialexpress.com