Tuesday, July 3, 2012

Majithia terms service tax on remittance by emigrants as retrograde step

 by Punjabnewswire4u (Balbir)
AMRITSAR, JULY 3
 Punjab Revenue, Information and Public Relations and NRI Affairs Minister Bikram Singh Majithia today described the latest decision of Congress led UPA Government to include foreign remittance to India by NRIs in the ambit of 12.36 % service tax as a retrograde step as it would discourage them to remit money through legal channels, giving a fillip to the Hawala trade.
                    In a statement issued here today, the Punjab NRIs Affairs Minister said that Congress led UPA government in frustration to free itself from policy paralysis has moved the clock of Economic Reforms in reverse by taking those decisions, which would put a stop on inflow of Foreign Direct Investment in the economic growth of the country. 
         He said that this unique decision was designed by the Congress led UPA Government to target Punjab and Gujarat Governments as these two states were getting maximum remittances from its citizens working in various countries. He said that over 80 lakh Punjabi NRIs were remitting on average Rs. 50 crore daily to Punjab that was being spent by their relatives in the development of the state and this dubious move of the Union Government would adversely affect the economic growth of Punjab.  
 He said that on the one hand we had been luring NRIs to invest in country and become part of India’s economic growth, the service tax on remittances by them to their parent country would discourage them to help country with their remittances. 
Mr. Majithia said that the government must understand that the NRIs are always bearing the heavy loss of having been uprooted from homes and they were in the foreign countries to earn livelihood.  He said that he along with Chief Minister would call on Prime Minister and Union Finance Minister to immediately withdraw this retrograde law that would adversely affect the economic growth of not only states but have a serious impact on foreign currency reserves of the country.

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