A Case For Taxing The Rich Farmers- Prof R R Pillai

March 10 2013No Comments

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Taxing the rich farmers has been the subject of debate for a long time without much action by the politicians for vote bank considerations. But for six decades we have tolerated this discrimination and have paid enough price both in terms poor fiscal health and perpetuation of feudalism impregnated with Mai Baap Sarkar attitude of those in power.

A tax on the rich farmers would do greater good to  both the fiscal health as well the democratic fabric in the vast section of  rural side of India. When the presently exempted section of farmers who can afford the burden of tax without suffering the vicissitudes of monsoon add to the revenues of government the government borrowing needs to spend on social welfare programmes will stand reduced and consequently  benefit the  Industry  through lower interest rate regime. Sobering effect on inflation, prices and deficits will follow.

But politicians for fear of backlash from the powerful farm lobby both in terms of funding the political activity as well influencing winnabilty of candidates don’t want to upturn the apple cart. While the present discrimination of six decades between farmers and non farmers in the matter of taxation  has helped the feudal mindset political class ,it has done great harm to the spirit of democracy in India ‘s rural areas.

Every time we hear voices mostly from the urban section protesting of tax payer’s money being frittered away by inefficient government we don’t hear similar  loud protest voice from the rural counter part. This will change once  the affordable farmers are taxed and denied appropriate efficient spending programme as a quid pro quo.

When the farmer folks contribute their share of hard earned money as tax for building infrastructure and if they see their hard money getting looted by the political and bureaucratic class the voice of protest will cry loud for effective delivery. Scams of likes of 70000CrIrrigation Projects in Maharashtra  will not be left to be decided by the corrupt political class  through Machinery of law and Judiciary alone at its own pace and sweet will. The voices of protests will turn the wheels faster.

Farmers will be vigilant and that will  do  a lot good for Indian Democracy. Chances of corruption getting curbed in the initial stage is high given the vigilant folks who will ever be ready to check and question the benefits flowing to them back out of the taxes contributed.

Today the farmers feel  obliged to keep silent since the politicians remind them, the money they bring in for development in the rural side  is solely  due to their personal effort in the allocation of budgetary recourse to which the farmers don’t contribute any way in the form of Agriculture Income tax.So they question not !

Once the farmers too contribute their share of income tax ,their moral authority to question the corrupt leaders is established  as a right which will put  tremendous  pressure on leaders from rural belt to deliver. A lavish life style which  many corrupt rural politicians of the day  enjoy even as corruption and scam charges stare at them will not remain unquestioned  day in and day out in their own constituency , as is in the urban counter part today by tax payers voices of protests.Agriculture Tax will bring in those rural voices of protest to deliver without corruption and dilute the Mai Baap Sarkar attitude of the present day feudalistic political class.

Even a rich farmer who had paid  his share of Agriculture Income tax  will question the politicians if the quid pro quo in terms of better roads,dams, canals, infrastructure etc are not delivered. Rampant corruption without the rural folks’ voice of protest as is happening in the absence of a sense of involvement will become a thing of the past. It is said eternal vigilance is the price of democracy. And vigilance will become a second nature for rural tax payers if the political class indulges in looting their hard earned money.

Apart from the institutions of  Police and Judiciary playing its role to deliver justice against the corrupt, this single most vigilance by people who  would now feel as  participants in the march to progress having paid their share of Agriculture Income tax , will turn a new leaf in the participatory democracy on the rural side  This   addition  to the urban voice of protest against unaccountability ,corruption and undemocratic power abuse  will complement and strengthen democracy, increase transparency and check rampant corruption among political class.

Agriculture Income Tax is not just a revenue enhancing measure and a non discriminator. I see it playing a role of  cleansing the corruption of feudalistic political class dominating and damaging our Democracy, through eternal vigilance by this class of tax payers too.

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