The Hindu : Tamil Nadu News : Bank withdrawal tax will hit middle class: Karunanidhi

Online edition of India's National Newspaper
Wednesday, Mar 02, 2005

Tamil Nadu

Tamil Nadu

Bank withdrawal tax will hit middle class: Karunanidhi

By Our Special Correspondent

CHENNAI, MARCH 1 . The Dravida Munnetra Kazhagam yesterday requested the Union Government to withdraw the tax imposed on bank withdrawals.

Its president, M. Karunanidhi, said the budget proposal was confusing and would affect the middle class. People were used to the banks offering interest on their deposits. The new proposal amounted to their paying interest when they withdrew money.

The Union Finance Minister, P. Chidambaram, said the proposal was intended to curb black money. If it actually served the purpose, he would be happy, Mr. Karunanidhi said. But he feared that the move would backfire and lead to an increase in black money. For, there was a likelihood of the people not depositing their money in banks because of the new tax.

Mr. Karunanidhi said that in every budget a few proposals would be withdrawn. He wanted this one also to go. He said the DMK was conscious of how it should conduct itself in a coalition. That was why the party was making a request.

The DMK chief was speaking at a public meeting held here to condemn the "autocratic rule" of the AIADMK Government. This was the first in a series of 1000 meetings to be organised all over the State.

Mr. Karunanidhi accused the AIADMK Government of politicising tsunami relief and said though the DMK was not in power here, the party was in the forefront of the relief and rehabilitation efforts.

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