BJP unhappy with Kelkar proposals

Claiming that it was against impairing the financial interests of any section of the society, the BJP today registered its opposition to the Kelkar Committee suggestions to levy income tax on agriculture and eliminate standard deduction and incentives for savings. ‘‘This is precisely the concern of the PM,” he said.

BJP general secretary Rajnath Singh, who heads a committee appointed by the party to study the Kelkar Committee proposals, said: ‘‘I am sure, FM Jaswant Singh, who has to take a final decision on these recommendations, would turn them down. I can recall the spirit with which he started his work in the Finance Ministry. He proceeded with the idea to ensure that no poor man went to bed hungry and no housewife had an empty purse.’’

Rajnath claimed that his party was opposed to the idea of agriculture being subjected to any income tax. He added: ‘‘The committee has recommended that the tax-rebate on savings be dispensed with. However, I believe that our Government would like to encourage savings and cannot agree to anything that would hurt the salaried class. In all probability, we would also continue with standard deduction.’’

Rajnath has convened a meeting of the committee on January 5 to go in to the proposals.