Punjab’s ruling Shiromani Akali Dal (SAD) on Thursday was on the same page with its age-old rival Congress on the issue of charging service tax on NRI remittances fee from the Non-Resident Indians (NRI).
SAD’s senior leader and State’s NRI Affairs Minister Tota Singh opposed the decision of BJP-led Central Government, of which SAD is a constituent.
Tota Singh said that he strongly opposed Centre’s decision, and sought its immediate withdrawal. He said that he would soon take up this issue the Prime Minister Narendra Modi.
“We strongly oppose it and we are totally against tax on NRI remittances fee,” said Tota Singh.
SAD’s firebrand leader said that he would soon write a communiqué to the Central Government expressing strong displeasure over its decision to charge service tax on NRI remittances.
He also maintained that to lodge a strong protest against Centre’s this decision, he would “lead a delegation of SAD members of the Parliament (MPs) to meet the Union Finance Minister Arun Jaitley.”
Known for his forthrightness, Tota Singh said that the Centre’s decision to charge service tax on NRIs’ remittances would make it difficult for the NRIs to send money back home for their family members and relatives.
Centre’s decision has attracted large scale criticism from the Indian diaspora. The issue was initially raised in Punjab by the state Congress president Partap Singh Bajwa asking the Chief Minister Parkash Singh Badal to take up the issue with the Prime Minister “at the earliest”.
His demand was supported by the former Chief Minister and senior Congress leader Rajinder Kaur Bhattal terming the decision as “grave injustice” to the NRIs. Bhattal also questioned Badal’s “silence” over the issue.
They argued that the decision would negatively impact the NRI plans to remit money to India as the additional transaction cost will drive them towards illegal money channels like hawala or to invest in countries other than India.
With Punjab having second-highest number of the NRIs after Kerala, the Centre’s move has strongly affected the State as a majority of Punjabis send money from abroad to their families on regular intervals.
The Minister also admitted to receive such complaints against the decision. “I have been receiving several calls from Punjabi NRIs to help them on this issue of charging service tax on remittances,” he said.