Government think tank NITI Aayog distanced itself from the comments made by its member Bibek Debroy on taxing agriculture income saying that views expressed by him were ‘personal’.
At a press conference on Tuesday on 3-Year Action Agenda, Debroy had said taxes should be imposed on farm income above a certain threshold to expand the tax base.
“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 had said.
In a statement NITI Aayog said: “The views on Taxing Farm Income expressed by Member Bibek Debroy were personal and not those of the Aayog.”
The clarification came after media reports said that NITI Aayog or its Draft Three year Action Agenda has recommended that Farm Income in India be taxed to expand the existing Income Tax base.
“The NITI Aayog categorically states that this is neither the view of the Aayog nor is such a recommendation made anywhere in the Draft Action Agenda document as circulated to the Governing Council at the meeting on April 23, 2017,” the statement said.
Earlier in the day, Finance Ministry Arun Jaitley also said: “The central government has no plan to impose any tax on agriculture income. As per the constitutional allocation of powers, the central government has no jurisdiction to impose tax on agricultural income.