Farmers will not be taxed: PM Modi

Pune: In the wake of the demonetisation of Rs 500 and Rs 1,000 currency notes, Prime Minister Narendra Modi on Sunday rejected apprehensions that farmers depositing money in banks will be subjected to tax.

Addressing the ‘International Conference and Exhibition on Sugarcane Value Chain – Vision 2025 Sugar’ here, he also said that announcing the demonetisation move before November 8 would have defeated the very purpose – of fighting corruption.

“An illusion is being spread, farmers are being misled that because of demonetisation, farmers depositing money in banks will have to pay taxes on them. I want to assure all the farmers, no tax will be levied on you. This country is yours, the money is yours, these banks are yours and so is Modi,” he said.

“We could not have done it before November 8 otherwise there were chances of information being leaked. If the information was leaked, then the very purpose of the demonetisation would have been defeated as the hoarders would have found ways to get rid of the money,” he said.

Asserting that the move was imperative to fight corruption as well as extremists and terrorists groups, Modi reiterated his passionate plea to the nation — made earlier in the day at an event in Goa — to give him 50 days to weed out ill-gotten wealth in India.

“Our enemies, more than their own currency, print our currencies and indulge in games of infusing fake notes to our economy. Extremists groups, be it Naxals (Maoists) or the terrorists, they hide this money and buy arms. It was essential to cut this supply of money to them. So we took this very big decision of demonetising.

“The value of Rs 500 and Rs 1,000 notes alone is around Rs 14 lakh crore. Our enemies, corrupts and anti-socials have been exploiting them. Yes, there will be hardships, but this will pave way for getting rid of a 70-year-old malady. This will open avenues for the coming generations, for the poor,” said Modi.