Terming the Centre’s decision to charge service tax on foreign remittances fee as a “grave injustice” to the NRIs, Punjab Congress on Sunday questioned Chief Minister Parkash Singh Badal’s “silence” over the same.
“The NDA Government led by Narendra Modi this year started charging a service tax of 12.36 per cent on foreign remittances fee which is a grave injustice to NRIs,” said Punjab’s former Chief Minister Rajinder Kaur Bhattal.Bhattal said that in Union Budget-2012, there was a proposal to tax the NRI remittances fee and Badal had opposed the idea by writing to the then Prime Minister.
later in July 2012, UPA government issued a clarification that there will be no service tax on NRI remittances fee, she said. “However, the Modi government through a circular dated October 14, 2014, cancelled the old circular and service tax on foreign remittances is now charged at 12.36 per cent,” she claimed while questioned Badal’s “silence” on the issue.
“NDA is forcing Badal to keep quiet and tolerate the injustice to NRI families and the NRIs,” she said.Bhattal warned the central government that the decision will negatively impact the NRI plans to remit money to India as the additional transaction cost will drive them towards illegal money channels likehawala or to invest in countries other than India.
A majority of Punjabis send money from abroad to their families, she said, adding that they send remittances on regular intervals to sustain the families back home.“Now after the burden of this levy, an additional cost has to be borne by these persons every time,” she said.