The salaried people were a neglected class in this year’s budget and now the cut in EPF rate for FY-18 is body blow for the poor. Interest rates have been falling in recent times but EPF rate cut should not have been touched as the fund is basically to look after one’s urgent needs after retirement. We do not have old-age medical and other benefits for citizens after retirement and keeping EPF rates intact would not have made much material difference in the context that the salaried and labour class pay their taxes honestly year after year.
The Finance Minister did appreciate the efforts of the salaried class in this year’s budget speech but the cutting of EPF rates is an slap on their honesty and it is the duty of the govt to reward honest tax payers with post retirement benefits for the hard work they put in during their earnings days when they slog to work towards our country’s growth and development!
(The views expressed by the author in the article are his/her own.)