The decision by the government to rescind the restriction on withdrawals from employee provident fund before the age of 58 finally puts an end to any controversy surrounding
this fund. It started in March when Finance Minister Arun Jaitley announced a tax on withdrawal of the employee provident fund (EPF). That was withdrawn due to protests
across the country. Then the government put a restriction on the withdrawal of the money before the age of 58. The government claims that this rule was put in place to protect
people’s money, but this excuse is farcical. For the private sector employee, the government exists as a tax and fee collector. There is no financial obligation to take care of an employee if one loses their jobs, nor are there any other benefits provided by the government. So, why is there any need for the government to restrict the withdrawal on the provident fund?
If the government is so keen on helping people post retirement
then there are better things to do, like improving health care or
even encouraging people to invest more money by easing off
on other indirect taxes.
