CITU EXPRESSES SERIOUS CONCERN OVER CUT OF INTEREST RATE ON EPF DENOUNCES ANTI WORKER AND PRO-CORPORATE POLICIES OF GOVT 

The Centre of Indian Trade Unions (CITU) expresses serious concern over the cut in interest rate on Employees Provident Fund (EPF) from 8.65% to 8.5%. In the meeting of Central Board of Trustees (CBT) of EPFO held on 5th March 2020, the workers’ representatives in CBT expressed strong dissatisfaction and resentment over the same.

The Govt pleaded that earnings on investment of EPF corpus has gone down from Govt Securities and other investment instruments and the interest rate has been reduced. But more than 65% of the incremental deposits in EPF has been invested in Govt Securities. The policy of the Govt to continuously lower the interest rate on small savings including social security savings led to lower earnings/return on investment of EPFO corpus and hence the interest rate on the same.

CITU condemns such anti-worker policies of the BJP Govt at the centre. The social security savings of the workers, most of which are parked in Govt Securities are long term recurring deposits at the disposal of the Govt. The trade unions are justly demanding since long differential rate of interest on social security savings of the workers higher than the interest rate on commercial credit/deposits. But the successive governments under neoliberal regime have been continuously lowering the interests rates on social security savings of the workers and all small savings instruments in general leading to huge loss of earnings of crores of workers and superannuated persons on which they survive in their old age. Simultaneously, the same Govt is so liberal in drastically reduce the corporate tax rates and also tax rates on returns on speculative investments in stock market. Such policy of the Govt is totally discriminatory against the crores of toiling people who actually create GDP and generate revenues in the national exchequer. It is nothing but loot on crores of working people to benefit the private corporate and speculators.

CITU denounces such anti-worker and pro-corporate and pro-speculator policies of the Govt and calls upon the workers and the people to unite and fight against the neoliberal policy regime which is looting the people to benefit the private corporate and speculators, both domestic and foreign.  

Issued by
(Tapan Sen)
General Secretary 

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