The Hindu : Taxing farmers' income will affect economy: Rajnath

Online edition of India's National Newspaper
Sunday, Jan 05, 2003

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Taxing farmers' income will affect economy: Rajnath

By Our Staff Correspondent

RAIPUR JAN. 4. The senior Bharatiya Janata Party leader and chairman of the party's committee on the Kelkar Committee recommendations, Rajnath Singh, today said that taxing the farmers' income would result in a collapse of the country's economy and hoped that under no circumstances would the Government accept this clause.

Talking to reporters here, Mr. Singh said that if agriculture was taxed, India's largest consumer and producer would have no purchasing power and this could adversely affect the economy.

Pointing out that the Government was not bound to accept the Kelkar panel recommendations, Mr. Singh said he wanted the Prime Minister's target of achieving socio-economic objectives, minimising disparities and simplifying taxation should be met.

However, some of the recommendations of the committee on indirect taxation and administrative reforms were good, he added.

Mr. Singh said his committee's final report on Kelkar recommendations would be submitted to the Prime Minister tomorrow but refused to reveal the suggestions made in it. He, however, said he felt that the exemption limit for the salaried class and the self-employed should be increased.

According to Mr. Singh, the economy was moving on the right track and the balance of payment was now on the positive side and the rate of inflation under check.

"The problem of unemployment cannot be solved by the Centre alone. The State Governments need to cooperate,'' he said in reply to a question on the lack of employment opportunities for the youth.

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