Tax agriculture income, says NITI Aayog member Debroy - Hindustan Times
close_game
close_game

Tax agriculture income, says NITI Aayog member Debroy

New Delhi | ByPress Trust of India
Apr 26, 2017 10:26 AM IST

NITI Aayog member Bibek Debroy today made a strong case for taxing agriculture income, an opinion contrary to the government’s stated position.

NITI Aayog member Bibek Debroy today made a strong case for taxing agriculture income, an opinion contrary to the government’s stated position.

Maturing Wheat crop in an agricultural field in Kota.(HT Archive)
Maturing Wheat crop in an agricultural field in Kota.(HT Archive)

In addition, the member of the government’s top think tank also suggested that exemptions on personal income tax should be removed to increase tax base from the current about 37 million in the country of 1.3 billion of people.

Hindustan Times - your fastest source for breaking news! Read now.

“On expanding the base on the personal income tax side, other than elimination of exemptions, is to also tax rural sector, including agriculture income above certain threshold,” Debroy said in a press conference.

Taxing agriculture income is a politically sensitive issue and successive governments have refrained from doing so.

As recent at March 22, Finance Minister Arun Jaitley had assured Parliament: “Agriculture income is not taxed and will not be taxed”.

When asked what should be the threshold of imposing income tax on rural sector, Debroy said it could be decided after taking into account the average income of either three years or five years.

“I don’t believe in artificial distinction of rural and urban, so whatever is the threshold on personal income side on urban side, should be the exactly same on rural side.

“At best what I can do because it is an agriculture income, instead of using agriculture income for one particular year, what I could do is I average it over three-year period or may over five years period as agriculture income is subject to annual fluctuations, barring that threshold should be the same,” said Debroy, a noted economist.

NITI Aayog had called reporters for briefing on its three-year draft action agenda for accelerating the economy.

NITI Aayog Vice-Chairman Arvind Panagariya, who was present at the press conference, however refrained from answering questions on taxation of agriculture income.

In May 2016, the Prime Minister’s Office had advised the NITI Aayog to prepare documents on 15-Year Vision, Seven-Year Strategy and Three-Year Action Agenda.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, March 19, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On