Impose 1% tax on properties of Maha billionaires: Desarda

Noted economist H M Desarda on Wednesday suggested imposition of one per cent tax on the properties worth Rs 125 lakh crore collectively owned by billionaires in Maharashtra, to tide over the cash crunch faced by the state government.

The former member of the Maharashtra state planning board was talking to reporters here.

"There are billionaires in Maharashtra, whose properties are collectively worth Rs 125 lakh crore. Even if the government imposes one per cent tax on these properties, it can earn a revenue of Rs 2 lakh crore," he said.

"Every year, these billionaires transfer 5 per cent of their properties. So, if a transfer tax of 35 per cent is imposed on these transactions, it this will add another Rs 2 lakh crore into Maharashtra's coffers," he added.

The state should hold a dialogue with the Centre about framing a law to that effect, Desarda said.

He also said that there was a need to address the issue of dwindling green cover in Maharashtra.

"Of the 3.8 crore hectares of land, 1.70 crore hectares is under cultivation. Out of the remaining land, the forest cover is on 52 lakh hectares. However, the density of tress in this land is below expectation. Hence, the forest department land should freed from encroachment," Desarda said.