TALKING TOUGH: A meeting on disinvestment in progress in New Delhi on Monday. Seen from right are Sitaram Yechury, CPI(M) Polit Bureau member, Prakash Karat, CPI(M) general secretary, A.B. Bardhan, CPI general secretary, Debabrata Biswas of the AIFB and D. Raja of the CPI. — Photo: Shanker Chakravarty

NEW DELHI: The Left parties on Monday decided to oppose the United Progressive Alliance Government's proposal to disinvest shares in profitable public sector undertakings as also privatisation of pension funds.

These decisions were among the five taken at the Coordination Committee meeting the four Left parties — the CPI, CPI (M), RSP and AIFB — held here. Addressing a news conference, CPI (M) general secretary Prakash Karat said the Left parties also discussed alternative proposals for resource mobilisation that would be sent to the Government shortly.

The Left parties decided to organise a widespread campaign against the U.S. policies to coincide with the visit of American President George Bush next month; take up plans to modernise Delhi and Mumbai airports; and put forward positions to be taken by India and the developing countries in the forthcoming negotiations of the WTO.

More discussions

Mr. Karat said the Left parties would discuss these issues at the next UPA-Left Coordination Committee meeting later this month. He reiterated that privatisation of pension funds was not acceptable and the Left parties would oppose the Pension Fund Regulatory and Development Authority Bill under consideration in Parliament.

Monday's meeting was held in the backdrop of the Finance Minister P. Chidambaram's meeting with Mr. Karat and the CPI general secretary. A.B. Bardhan last week. The Finance Minister put forward the proposal to disinvest shares in four public sector undertakings — Neyveli Lignite Corporation, National Mineral Development Corporation, Power Finance Corporation and Housing and Urban Development Corporation.

The consensus was once the Government took this route it would open up many such cases in future and there would be no stopping.

The Left parties have maintained that the Manmohan Singh Government has not levied taxes on the affluent sections and instead offered them tax breaks in successive budgets. As a measure to raise resources for social sector funding, the Left parties are considering several proposals including tapping of over Rs. 2.21 lakh crore of cash reserves in 50-odd public sector undertakings; raising of the tax-GDP ratio.

Securities tax

The decision of the Union Government to alter the rate for the securities transaction tax under protest from market players and make some alterations in it has also been under the Left scanner. Sources in the Left parties said there was a case for securities tax being applied uniformly for all kinds of transactions.

Other measures under consideration include excise duty on cars run on diesel, on generators and captive power turbines run on diesel, levying sales tax on five star hotels and shopping malls.

Similarly, the alternative proposals under discussion include introduction of inheritance tax that is prevalent in some developed nations and broaden services tax base especially in IT enabled services.

Besides Mr. Karat and Mr. Bardhan, those present at the news conference included AIFB general secretary, Debabrata Biswas. RSP Central Committee member Abani Roy and CPI National Secretary, D. Raja.

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