Expressing concern over Union Budget proposal on February 29 on tax withdrawals from the Employees' Provident Fund (EPF) contributions, FICCI said it wasencouraged by the reports that Finance Minister Arun Jaitley will revise these provisions.
In a statement it added that these proposals affect salaried class which has been persistent in contributing their bit to the exchequer
In his budget speech, the finance minister said 60 percent of withdrawals from provident fund accounts will be taxed on contributions to be made after April 1. The purpose is to make India a more insured and pensioned society, he added.
"FICCI welcomes the decision of the government to give a re-look to these Budget provisions," FICCI president Harshavardhan Neotia said in the statement.
After concern over the step, the Centre is considering to give relief to people but without a complete rollback, said a report.