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Business News/ Industry / Agriculture/  Budget 2024: RBI MPC member Ashima Goyal suggests govt can look at taxing rich farmers
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Budget 2024: RBI MPC member Ashima Goyal suggests govt can look at taxing rich farmers

Ahead of the Interim Budget presentation in Lok Sabha on February 1, RBI Monetary Policy Committee member Ashima Goyal suggested that the government can contemplate imposing income tax on rich farmers to bring about fairness in the taxation structure in the country.

Ashima Goyal is an eminent economist and a member of the RBI's Monetary Policy Committee. (Photo: Mint)Premium
Ashima Goyal is an eminent economist and a member of the RBI's Monetary Policy Committee. (Photo: Mint)

Ahead of the Interim Budget presentation in Lok Sabha on February 1, the Reserve Bank of India's Monetary Policy Committee (MPC) member Ashima Goyal on Wednesday suggested that the government can contemplate imposing income tax on rich farmers to bring about fairness in the country's taxation structure, news agency PTI reported.

"Government transfer payments to farmers are like a negative income tax. Along with that, a positive income tax can be applied for rich farmers as part of a movement to a data-rich system with low tax rates and minimum exemptions," PTI quoted Goyal as saying.

Also Read | Budget 2024: How the Union Budget is prepared? A quick guide

It is important to note that the Union government, through the PM-Kisan Samman Nidhi, provides 6,000 annually to poor farmers.

The MPC member was responding to a query on whether the income from agriculture should be taxed in India.

When Goyal, an eminent economist, was asked which government—a coalition government or single-party--produced better growth rates in the country, she replied that the economic growth rate of a country depends on several things, but during judging a government it is also necessary to see what growth rate they inherited and what they left the country with.

Also Read | Budget 2024: A quick guide on how to read the Budget document

"Coalition governments have to work towards creating a consensus, which is a good thing.

"But they tend to favour policies that deliver short-run rewards for their constituents, which hurt growth in the long run," she added.

Also Read | Budget 2024: Interim Budget vs Vote on Account. How the two are different?

The MPC member noted that a single-party government can carry out measures that enable sustainable long-run growth. At the same time, she emphasised that it must be open to constructive criticism and feedback from different groups in the country to avoid making wrong decisions.

"It (India) can get rich before it gets old if productivity-raising innovation is stimulated," Goyal said, adding that this requires well-designed government facilitation of private freedoms and capabilities, safeguarded with intelligent regulation.

 

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Published: 17 Jan 2024, 08:58 PM IST
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