BJP favours abolition of tax on farm inputs

BJP on Thursday favoured abolition of taxes on agricultural inputs and implements to bring down the cost of production while demanding differential rates of interest on industrial products in the 2002-03 Union Budget.

Noting that lower cost of agricultural inputs will spur competitiveness of industrial products dependent on these inputs, BJP president K Jana Krishnamurthy told newspersons in New Delhi: "The government should boldly come forward to abolish taxes and levies on agricultural inputs and implements. This bold step will enable our farmers to bring down the cost of production considerably".

While lauding low inflation and a 'comfortable' forex reserve, Krishnamurthy noted the sluggish industrial growth and low employment opportunities today.

The party president also said the government should make industrial products, which compete in the international markets, price competitive.

"Another suggestion is that our industrial products, specially those which are facing foreign competition should be enabled to compete on the price side. It is an undeniable fact that higher rate of interest plays a major role in pushing the cost of production".

By levying lower interest rates on those industrial products which have to face international markets, government can spur industry to perform better in the face of foreign competition.

The ruling party also advocated higher rate of interest for small deposits, normally those made by pensioners and senior citizens.

Krishnamurthy said: "Our suggestion will be whether there can be a slightly higher rate of interest for deposits upto Rs 100,000, which is normally the deposit limit of a pensioner or a lower middle class man of his life savings".

Noting the plight of this section of people, he said "lowering of interest rates has indeed affected them. The common man is not able to understand that there is no real loss of interest when the inflation has been kept so low as less than two per cent".

He also asked for better Centre-states' co-operation in implementing central schemes.

"Unless there is total co-operation of the state governments, it will be most difficult for the central government alone to monitor the implementation of central schemes".

Terming the basic parameters of the economy as 'comparatively' good, the party lauded the government for the low inflation rate and huge buffer foodgrain stock.

PTI