Modi pushed forward, Sinha back

Under attack for tinkering with tax-saving concessions from its middle class vote bank, the BJP today asked Finance Minister Yashwant Sinha to restore tax rebate on savings by salaried class, review service tax on insurance and introduce a new scheme for pensioners affected by cut in interest earnings.

The BJP executive adopted the economic resolution to restore 20 per cent tax rebate under Section 88 for incomes between Rs 1.5 lakh and 5 lakh. Seeking reconsideration of proposed service tax on insurance and removal of tax sops on diesel for fishermen, it sought direct fertiliser subsidy for them.

The party wanted the government to distance itself from pricing process of petroleum products.