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Left seeks withdrawal of postal service tax

Our Bureau

New Delhi , June 23

Protesting against the Government's recent move to levy service tax on postal services, the CPI(M) has demanded that the Congress-led coalition withdraw the `fresh burden' on the common man.

"According to my information, this has already been implemented on all types of postal services, including money orders, postal life insurance and speed post among others," the CPI(M) Polit Bureau Member, Mr Sitaram Yechury, said in a letter to the Prime Minister, Dr Manmohan Singh.

It would badly affect those depending on remittances sent by the earning member of the family.

Currently, a tax of 12.24 per cent was being levied on these services, including a 12 per cent service tax and an additional 2 per cent education cess, Mr Yechury said.

Sparing weaker sections

He said the Left had articulated the need to widen the tax net to mobilise more resources, but it should be done in a way that it does not affect the weaker sections of society.

"Widening of the tax base should target those who can afford to part with their wealth rather than targeting the poor," the letter added.

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