Union Budget 2016, gave tremors to crores of workers in the country. It was a proposal to impose tax on 60 percent of PF withdrawals. Government has issues clarifications, but the matter is yet to be clear. Finance minister has said final decision will come during budget discussions. Considering the present scenario, Tax on total contributed and accumulated amount at the time of withdrawal will be 18 percent of total saving. Government has clarified that 40 percent of withdrawals will not be taxed. There was a clarification from revenue secretary, that it will be for the interest taxation will be applied. But later Finance Minister himself denied it.Current proposal is detrimental to working people as people use PF savings for house construction, children’s marriage and after year’s life and treatment.According to government, only tax saving option will be to deposit the same in some annuity or pension scheme. But necessity of bulk amount cannot be met with such a thing. This is nothing but injustice or cruelty to working people . Next reason, said is it is to bring parity between EPF and NPS. Where in NPS the amount of non-taxable withdrawal is 40 percentage.if that is disparity, it also should be removed. It is speculated that, Aim of Taxing EPF withdrawal is slowly forcing to people to adopt national pension scheme(NPS). But NPS does not have any guarantee about returns, it can ruin after year lives of employees. EPF which is mandated for employees with upto 15,000 rupees as monthly basic salary is the wide scheme of social security of workers. 12 percent of basic and dearness allowance should be contributed by employee and employer should also allocate matching amount.Taxing EPF withdrawals will make less secure instruments attractive and will make this scheme unattractive. Making this scheme unattractive will eventually destroy this institution of worker’s social security. Because of the above said reasons, government should stop making any changes to EPF. Employees are already paying tax on income, tax on goods and services as well. It is a double taxation for them.Proposal to siphon off hard earned money (after tax) by taxing 18 percent is not acceptable ! #RollbackEPF .