No wealth tax on farm land, commodities tax to stay: FM

Finance Minister P Chidambaram today told Lok Sabha that the UPA government never intended to impose any wealth tax on farm land even if it exists in the vicinity of an urban region.

“The policy of the UPA government is not to impose any wealth tax on agricultural land,” Chidambaram said amid noisy atmosphere in the Opposition in Lok Sabha.[caption id=“attachment_740763” align=“alignleft” width=“380”] Finance Minister P Chidambaram. Image courtesy PIB[/caption]

“Urban land does not include agricultural land which is used for agricultural purpose,” the minister reassured the House. “Madam, a canard was spread that the law was amended. I challenge anyone to a debate whoever said that the law on wealth tax in relation to farm land was amended,” Chidambaram said.

“The most important amendment in the Finace Bill makes it abundantly clear that there was never any intention on imposing wealth tax on agricultural land,” he said.

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He also said that there are many amendments to the Finance bill, which will help attract long-term flows to the country. Chidambaram proposed a 5 percent tax on int erest payment to FIIs for investment in government and corporate debt.

He even exempted the Railways from paying service tax between July-October 2012.

Providing relief for non-resident investments in infrastructure bonds, he also clarified that trading in commodity derivatives will not be regarded as speculative

Hence commodities transaction tax is here to stay.