NEW DELHI: The Central Association of the Private Security Industry (CAPSI) wrote to Prime Minister Narendra Modi, saying private security services should be exempt from the service tax.
In a letter sent to the Prime Minister on July 29, CAPSI President Kunwar Vikram Singh said that in order to “create goodwill among its citizens after Covid, private security services should be declared tax-exempt because the majority of these services are now used by lakhs of associations of social protection of residents (RWA) and small and medium-sized enterprises (SMEs) “.
If the private security industry is exempt from paying the service tax, consumers of private security services will benefit tremendously as these services will become more affordable, he added.
Singh believes that it is the fundamental and fundamental duty of the government to ensure that every citizen of the country feels safe by providing an adequate homeland security infrastructure.
The government has created police and paramilitary forces to respond to the safety and security situation of its citizens and does not bill people for using these services which are provided to ensure a safe life for all, a he pointed out, he wrote in the letter.
Due to the very low public-to-police ratio in India, there are huge gray areas where citizens are forced to protect themselves and their assets by retaining paid services from private security agencies, he said. .
This urge is felt by them as they feel insecure due to various predominant factors that create a psychosis of fear among them that requires them to purchase private security for a cost, according to the letter.
The circumstances stem from the fact that the government’s internal security infrastructure is not adequate to grant the right to security to citizens, he said.
Such a shortfall in government services must be compensated for by the state by paying for additional security services needed by its citizens, Singh said in the letter.
He added that “this huge expense may not be possible for an already overwhelmed government, but it should not levy a tax on services from those who should have been protected by the government.”
People pay for the security services, therefore, ease the financial burden on the government of raising more battalions of police and paramilitary forces.
Given this huge saving, the government should not charge a service tax for the services it is required to provide, he said.
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