MPC Member of RBI Ashima Goyal Recommends for Taxing Wealthy Farmers in the Budget 2024 to Enhance Tax Fairness
As the nation eagerly anticipates the upcoming Interim Budget 2024, Reserve Bank Monetary Policy Committee (MPC) member Ashima Goyal has proposed a unique approach to enhance tax fairness in the system. Goyal suggests considering the imposition of income tax on wealthy farmers, aiming for a balanced taxation structure. In this article, we explore this proposal, shedding light on its implications and the current landscape of government initiatives for farmers.
Government’s Wishlist for Budget 2024
Reserve Bank MPC member Ashima Goyal has recommended contemplating the imposition of income tax on affluent farmers in the upcoming interim budget to foster fairness in the taxation structure. Goyal emphasizes that while government transfer payments to farmers serve as a kind of negative income tax, introducing a positive income tax for well-off farmers could contribute to a data-rich system with lower tax rates and minimal exemptions.
PM-Kisan Scheme Overview
The Narendra Modi-led government currently extends financial support to poor farmers through the PM-Kisan Samman Nidhi scheme, providing an annual grant of Rs 6,000. Launched just before the 2019 Lok Sabha elections, this central scheme has 100% funding from the Centre. There are speculations about a potential increase in the annual transfer from Rs 6,000 to Rs 8,000 per farmer.
16th Instalment of PM-KISAN Scheme
While there is no official announcement, the Centre is expected to launch the 16th instalment of the PM-KISAN scheme between February 2024 and March 2024. In the previous instalment released on November 15, 2023, data from the Ministry of Agriculture and Farmers’ Welfare reveals a notable increase in women beneficiaries, constituting every fourth beneficiary added during the period.
Viksit Bharat Sankalp Yatra (VBSY)
The surge in women beneficiaries is attributed to the Viksit Bharat Sankalp Yatra (VBSY), a government initiative launched on November 15, 2023. Aimed at creating awareness about government schemes, particularly ahead of the 2024 Lok Sabha elections, VBSY has successfully added 40,50,375 beneficiaries, with Uttar Pradesh leading in the number of women beneficiaries.
Women Beneficiaries Under PM-KISAN
Among the states with the highest number of women beneficiaries under the PM-KISAN scheme, Uttar Pradesh, Rajasthan, Manipur, Jharkhand, and Kerala take the lead. The Viksit Bharat Sankalp Yatra has played a pivotal role in reaching out to women beneficiaries and achieving broader coverage under the scheme.
Conclusion
As the government contemplates new strategies to ensure tax fairness, the proposal to impose income tax on affluent farmers takes centre stage. The upcoming Interim Budget 2024 is awaited with anticipation to see how these proposed changes will shape the taxation structure and further benefit farmers across the country. Stay tuned for more updates on this crucial economic development.
To Know the Income Tax Deductions Available to Individuals in FY 2023-24 CLICK HERE
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