The hot button issue of the imposition of wealth tax has reached its logical end on Tuesday with the Union Finance Minister P Chidambaram clarifying that no such tax be levied on agriculture land.
Prime Minister Dr Manmohan Singh had assured Punjab Chief Minister Parkash Singh Badal of satisfactory solution of his demand for abolition of wealth tax on agricultural lands within the urban periphery of municipal limits.
Nevertheless, the ruling alliance in Punjab has decided to go ahead with the special Vidhan Sabha session convened to discuss wealth tax on May 3.
However, the Shiromani Akali Dal (SAD) has withdrawn its call for State-wide dharnas on May 2 at all district headquarters to oppose Centre’s move to impose “unwanted” tax.
“The issue has been resolved. We have withdrawn our call for dharnas on May 2 to protest against the imposition of wealth tax on agriculture land by the Congress led UPA Government. Chief Minister is still in New Delhi, but is no more meeting with the leaders on this issue….We are still going ahead with the assembly session,” SAD secretary and spokesperson Daljit Singh Cheema told The Pioneer.
Not sure what the House will discuss in the assembly session called specially for deliberating upon wealth tax, Cheema said that this will soon be decided.
“Badal saab is still out of State, and decision will be taken after he comes back,” he added.
The agenda for the May 3 Vidhan Sabha session would be discussed during the joint meeting of the alliance partners — Shiromani Akali Dal and Bharatiya Janta Party — on May 2. The meeting has been called by leader of the House Parkash Singh Badal on Thursday, and all the MlAs of the SAD, BJP have been asked to remain present.
The House was earlier planning to pass a resolution pressing upon the Centre to withdraw its proposed amendment to impose the wealth tax.
The proposed Amendment Bill was to be moved in Parliament on May 6. As per the amendment, all types of agricultural land within the fixed parameters will be treated as urban land and be subject to wealth tax at the rate of one per cent of the collector rates.
The preliminary estimation revealed that no less than 80 per cent of cultivable land would come within the tax range, as the land falling within the aerial radius of eight kilometers of municipal limits will be covered under the tax.
In case, the wealth tax is implemented, the border area farmers will have to pay a minimum tax of Rs30,000 per acre annually, while where land price are higher, the tax will shoot up to Rs1 lakh per acre yearly.
Terming it as “extremely dangerous and critical situation”, Chief Minister Badal had shot off written communiqués to the Prime Minister, Finance Minister, all Members of Parliament besides Chief Minister’s of all the States across the country to evolve a consensus for the immediate withdrawal of wealth tax on agriculture land.
Besides, Badal was holding back-to-back meetings with the senior leaders of national and regional parties to mobilize a public opinion against the imposition of the wealth tax to prevail upon the Centre to abolish it immediately.
The Chief Minister, till morning before Chidambaram made his statement in the lok Sabha, had declared to firmly oppose the imposition of wealth tax and continue its endeavor till its logical conclusion thereby safeguarding the interests of the farmers.
