Kerala - Alappuzha   

Concern over capital gains tax

Staff Reporter

ALAPPUZHA: The Kuttanad Vikasana Samithy has expressed its concern against the move of the State Government to introduce a capital gains tax to check reclamation and diversion of marginal farmlands. In a statement here, Samithy executive director Fr. Thomas Peelianickal said big business houses planning to fill up paddy fields and reclaim the fields to set up resorts and commercial ventures would be ready to pay the tax as their profit from the venture would be several times higher than the tax they would have to pay.

The decision to introduce the tax would result in large-scale reclamation of paddy fields and would also affect the ecological balance of areas such as Kuttanad, Fr. Peelianickal said.

Minister for Finance T.M. Thomas Isaac had announced the move to introduce the capital gains tax at the inauguration of the Kerala Environment Congress.

The revenue from the proposed tax was to be used to preserve and protect the wetlands.

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