Ten central trade unions (CTUs) have urged Finance Minister Nirmala Sitharaman to introduce inheritance tax and increase corporate and wealth taxes in the forthcoming Union Budget 2025-26. The trade unions want the government’s resource mobilisation to be centred around these taxes while lowering GST on essential goods and medicines.

“Over the decades, corporate tax rates have been slashed down. That must be corrected in the interests of fairness, equity and propriety. Even 1% inheritance tax on the super-rich with the ceiling can fetch huge amount to the budget receipts. It can be used to finance the education, health and other social sectors," the CTUs say in a pre-Budget memorandum submitted to the finance minister.

The trade unions also called for an increase in the ceiling for the income tax rebate for the salaried class on their salary, EPFO and ESI contribution and entitlement. “Gratuity calculation norms must be revised and one month period be extended to ensure higher gratuity payment to all workers/employees on retirement. The ceiling on gratuity should be removed. The pension should not be taxed," the unions say.

The memorandum also pitched for a social security fund for the unorganised workers and agricultural workers to provide them with defined universal social security schemes including minimum pension of ₹9,000 per month linked with DA and other medical, educational benefits. The CTUs wanted special schemes to ensure occupational health and safety measures for workers, especially for the vulnerable trades like waste recyclers, salt pan workers, glass bangle makers, gig/app-based workers, etc. Income/wage loss compensation during the lean sessions and in the event of natural calamities including heat & cold waves, unseasonal rains, floods, cyclones and others have been sought. The need to set up climate resilience funds to cover the losses incurred by the workers due to natural calamities especially in the background of climate change was another issue highlighted by the trade unions.

The memorandum was signed by representatives of Indian National Trade Union Congress, All India Trade Union Congress, Hind Mazdoor Sabha, Centre of Indian Trade Unions, All India United Trade Union Centre, Trade Union Coordination Centre, Self Employed Women’s Association, All India Central Council of Trade Unions, Labour Progressive Federation and United Trade Union Congress.

central trade unions

Budget 2025: Trade unions call for inheritance tax, hike in corporate, wealth taxes