Niti Vice Chairman says time is not ripe for taxing agricultural income

Niti Aayog Vice Chairman Rajiv Kumar has said that imposition of tax on agriculture income has always been considered by ‘successive Governments’, even as he cautioned that any such move should be taken once the sector is productive and attached to modern scientific methods.

He further said the Government think tank will come out with a development agenda for ‘New India 2022’ by July, which will spell out strategy for expediting economic growth.

“Taxing agriculture income has always been under consideration of successive governments. We have to first ensure that our agriculture become productive and is put on a modern scientific basis,” he said in a tweet.

Kumar was replying to a question on twitter whether  taxing agriculture income beyond a threshold is a good idea as presented in the Kelkar report.

Taxing the agriculture income has always been a politically sensitive issue and governments have refrained from doing so.

Last year , a controversy had erupted after Niti Aayog member Bibek Debroy at a press conference had said the agricultural income above certain threshold should be taxed.

However, Finance Minister Arun Jaitley had later clarified that there was no such proposal and the Centre has no power to impose tax on agricultural income.

The Niti Aayog too had quickly distanced itself from the comment, saying it was the personal view of Debroy.