Never mess with the middle class. If the government didn't believe in this maxim before, it was forced to acknowledge this reality on Tuesday. The day after Finance Minister Arun Jaitley delivered his Budget speech in the Lok Sabha, one particular provision produced widespread anger, a top trend on Twitter and a petition on Change.org.
The provision in question is the Employee Provident Fund, which is crucial for salaried employees. With more than 3.7 crore subscribers, the retirement benefit scheme offers 8.8% returns and was exempt from taxes. For many people, this is the lone tax-saving tool.
So when the finance minister announced on Monday that 60% of Employee Provident Fund would be subject to tax, including on the principal, he did not make any friends.
The salaried classes, including trade unions, were outraged. This tweet summed up the general sentiment.
They take my money and tell me its for my old age. Then they tax it when I need it. #RollBackEPF Bahut #AchcheDin
— Alokananda (@alokaghosh5) March 1, 2016
An online petition was started by a finance professional from Gurgaon, Vaibhav Aggarwal, seeking a rollback. By Tuesday evening, more than 10,000 people had signed the petition. In addition, #RollBackEPF was a top trend for most of the day as people vented their anger at the government.
Seemingly in damage control, the government sought to make some clarifications. First, the revenue secretary appeared to suggest that only the interest on EPF would be taxed. Then the finance ministry put out an official clarification which seemed to rollback the rollback, leaving everyone confused. By the evening, it appeared that the government was still considering its next move.
A clarification for a clarification that needs another clarification is no more a clarification. It's comedy #RollBackEPF
— Derek O'Brien (@quizderek) March 1, 2016
Meanwhile, others on social media sought to lighten the mood:
Jaitley when asked what he plans to do with the savings of the middle-class #RollBackEPF pic.twitter.com/lcPiHwip8B
— वन्दे मातरम (@tweeteringuise) March 1, 2016
@kapsology Reaction on #RollBackEPF 😝😝😝😝 pic.twitter.com/vvb1VLswdp
— Rahis Khan (@rahiskhan77) March 1, 2016
EPF announcement, then analysis, then clarification, then explanation, then more clarifications. #RollBackEPF pic.twitter.com/gUfu8uVURl
— Nigel Britto (@NigelBritto) March 1, 2016
Modi: #EPFO pe tax? Wat is this?
— ♡ JαHαNGıR αNSαRı ツ (@ittefaq_se) March 1, 2016
Jaitley: I don't know.#RollBackEPF pic.twitter.com/PFfbOEQBKV
#RollBackEPF
— कोमल :) (@Komal_Indian) March 1, 2016
Modi : Tax on EPF withdrawals & employer's contribution 🙅👊
Bhakts : Modi Modi Modi 😔😂 pic.twitter.com/0Zs3PpErXD
Modi Cabinet ..Current situation
— Rahis Khan (@rahiskhan77) March 1, 2016
on #RollBackEPF issue pic.twitter.com/kNeC5Ha8AP