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LATEST NEWS UPDATES | Finance Ministry Had Endorsed Mandi Tax, Which BJP Is Criticising to Counter Protests -Dheeraj Mishra

Finance Ministry Had Endorsed Mandi Tax, Which BJP Is Criticising to Counter Protests -Dheeraj Mishra

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published Published on Dec 28, 2020   modified Modified on Dec 30, 2020

-TheWire.in

The finance ministry had said, "Market fee is not a tax and the concerned APMC provides facilities in mandis in exchange for the amount."

New Delhi: Amid the raging protests against the disputed agrarian laws passed by the Centre, a far more widespread and deeper controversy has emerged over the taxes levied across state agricultural markets.

Members of the ruling Bharatiya Janata Party have been criticising the Agricultural Produce Market Committee tax in an effort to counter the protests, and endorsing the newly enacted laws with the claim that they will do away with such a tax.

Alleging that only farmers from Punjab are involved in the protests, senior BJP leader and Rajya Sabha MP Sushil Modi recently said, “The mandi tax in Punjab is 8%, which is good income for the state government as well as middlemen but the farmer suffers. The new agricultural laws of the Centre make a dent in this system, which is why middlemen and some state governments are instigating the farmers (to continue their stir) in order to tarnish the Prime Minister’s image.”

While Sushil Modi believes that the state government and middlemen are profiting from the mandi tax, official documents obtained by The Wire reveal that the Union Ministry of Finance had justified such a tax imposed in the mandis and the Union Agriculture Ministry had supported it too. The ministry had said that this amount is collected for services offered at the mandis.

In its recommendations, the National Farmers’ Commission, also known as the Swaminathan Commission, set up in 2004 to address the agrarian crisis, asked the states to urgently improve the APMC system.

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TheWire.in, 28 December, 2020, https://thewire.in/agriculture/exclusive-finance-ministry-mandi-tax-apmc-farmers-protests


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