VIJAYAWADA: In a big relief to 25,614 farmers who had parted with their land to facilitate construction of the capital city Amaravati, Union Finance Minister Arun Jaitley on Wednesday announced exemption from capital gains tax for them.
This measure, announced in the Union Budget 2017, is likely to benefit farmers to the tune of around ₹10 lakh to ₹30 lakh each, depending on the commercial value of their plots measuring 1,000 sq yards per acre they had given for the capital city, under the Land Pooling Scheme (LPS).
Another reason for the happiness of the farmers was the Finance Minister’s announcement reducing the capital gains tax holding period from three years to two years. Farmers burst crackers in Thullur and celebrated the announcement.
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Naidu happy
Reacting to it, Chief Minister N. Chandrababu Naidu said, “The exemption will give a relief of about ₹700 crore to ₹900 crore to the farmers. We have asked the Centre to give exemption to farmers for five years, but they gave it for two years. We will pursue the matter with the Centre.”
Union Minister of State for Science and Technology Y. S. Chowdary said: “I offer my special thanks to the Finance Minister on behalf of the farmers of AP. I feel capital gains tax exemption for those who pooled their land to build our new capital Amaravati is a great recognition of their spirit and a worthy reward. It shows how significant AP is to the Central government.”
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Tadikonda MLA T. Sravan Kumar thanked the Chief Minister along with local farmers.
Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) general secretary P. Bhaskar Rao termed the exemption a big relief for the farmers who gave up their fertile land.
S. Akkaiah Naidu, former chairman of the Vijayawada branch of the Institute of Chartered Accountants of India, said the exemption came as an encouragement to farmers who wished to sell their land.
Mr. Sravan Kumar, who is the local MLA, and Guntur MP Galla Jayadev had raised the issue with the Finance Minister when he was in Amaravati in October last for laying the foundation stone for the Andhra Pradesh (AP) State Administrative Complex at Rayapudi in Thullur mandal in Guntur district.
The State government had been asking the Centre to consider the farmers of Amaravati as a special case. Mr. Naidu dashed off letters to Mr. Jaitley and farmers’ delegations too met the Finance Minister in Delhi and submitted representations.