Monday, August 14 2006 12:40 Hrs (IST) - World Time -

Bangalore: CPM, extending crucial outside support to the UPA Government, has demanded abolishing of forward trading in essential commodities to rein in prices,and expressed the view that non-imposition of long-term capital gains tax is unjustifiable.

Addressing a public meeting here, CPM General Secretary Prakash Karat said allowing forward trading is leading to speculation and allowing big traders and companies to 'corner' stocks, hoarding and profiteering, and 'push up' prices.

Pointing out that BJP and UPA Chairperson Sonia Gandhi are also in favour of the abolition, he wondered, "What's the problem in stopping ?".

"This (forward trading) is benefiting only big companies, big traders. Why are you looking after their interest, and not the interest of the people ?", Karat asked.

He said the CPM suggested to the Government to introduce long-term capital gains tax on equities to raise resources for social sectors, but UPA does not want to implement it to keep foreign institutional investors in good humour.

Karat said FIIs are making crores of rupees of profit by investing in Indian stock markets but are not taxed.

"How can you justify ?. They (UPA) don't want to displease foreign investors coming into our share market. They (FIIs) threatened that if you (Government) introduced (tax)they will go out of the countrytake money out of India," he said.

Attacking Government's move to set up special economic zones in a big way, he said in the name of SEZs, tens of thousands of acres of land are being given to 'big companies' and 'most powerful vested interests' by dispossessing farmers who get 'pittance' for the land.