The All India Road Transport Workers Federation (AIRTWF) has also demanded withdrawal of the Road Transport and Safety Bill and steps for implementation of the V V Giri National Labour Institute recommendations.
AIRTWF General Secretary K K Divakaran said the proposal is against the interest of the drivers.
The Federation has asked workers to stage protests on March 10 against the proposal.
A K Padmanabhan, the President of CITU, at a protest by workers today termed the proposal to abolish the permit system as violation of the Constitution and against the interest of the nation.
"Instead it is in the interest of the people," he said.
In the Budget for 2016-17, Finance Minister Arun Jaitley said that abolition of permit-raj will be a medium term goal.
Passenger traffic segment is a totally unreformed sector which suffers from several impediments, Jaitley said in his budget speech.
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Meanwhile, national transporters body the All India Motor Transport Congress (AIMTC) today expressed disappointment with the Budget, saying the government had gone back on its commitment to exempt transporters from TDS.
He also said an emergency meeting of its executive committee will be convened shortly to take stock of the situation and decide the future course of action.
Wadhwa said following their nationwide strike last October to protest against issue of toll tax, Gadkari had committed that he would get them exempted from TDS in the Budget.
The finance minister had given assurance twice that the Finance Bill 2016 will be amended to exempt transport sector from TDS, Wadhwa said.
The 79-year old AIMTC is the apex body of cargo and passenger transporters representing around 93 lakh truckers and about 50 lakh bus and tour operators. It covers over 3,300 state-level federations and transport associations, the statement said.
