New Delhi: A day after their Central Committee deliberated on crucial economic and foreign policy ssues, top CPI(M) leaders yesterday (Jan 6, 2007) held a meeting with External Affairs Minister Pranab Mukherjee and Finance Minister P Chidambaram here.

The meeting, attended by party General Secretary Prakash Karat and Polit Bureau member Sitaram Yechury, assumes significance as it comes when the government has started consultations for the union budget and Mukherjee undertakes a crucial visit to Pakistan later this month.

Though there was no official word from either side on what transpired at the meeting, the parleys came in the backdrop of the Singur issue with the party seeking a major overhaul of the Land Acquisition Act of 1894 as also amendments to Special Economic Zone (SEZ) Act and rules.

The major Left party has been opposing major economic bills on pension and banking reforms.

Discussions between the Left parties and the government on the SEZ issue was continuing in the aftermath of formation of a Group of Ministers on the issue.

With regard to the government's budgetary exercise, the CPI(M) is demanding re-introduction of long-term capital gains tax in the coming budget with a view to widening the tax base.

The government, the party says, should aim at widening the base also by bringing 10 per cent of the rural rich within the net, instead of raising tax rates.

The CPI(M) has given a formal representation to the government for considering re-introduction of the tax in the forthcoming budget.