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MP CM urges FM to remove capital gain tax on assets managed by state firms

Madhya Pradesh Chief Minister Shivraj Singh Chouhan requested Union finance minister Nirmala Sitharaman to remove the separate capital gain tax on assets managed by the state company

Shivraj Singh Chouhan | Nirmala Sitharaman | Tax on capital gains


Shivraj Singh Chouhan
Madhya Pradesh Chief Minister Shivraj Singh Chouhan

Madhya Pradesh Chief Minister requested Union finance minister to remove the separate capital gain tax on assets managed by the state company.

During the meeting with the Union Finance Minister at her office here, Chouhan raised the issue. Madhya Pradesh had been given an incentive of Rs 1,055 crore under the special assistance to states for capital expenditure by the Government of India.

"In Madhya Pradesh, the government has set up a Special Purpose Vehicle (SPV) for public asset management. Capital gains tax is not levied when a government department is involved in asset management. But if you form a company separately, then capital gains tax is levied," he said.

"I urged the Finance Minister that even if we are doing it by forming a separate company, we are doing it under our policy. Therefore, there should be no separate capital gains tax."

Referring to the incentive of Rs 1,055 crore given to Madhya Pradesh, he said the state managed the public assets better by forming the public asset management company. Madhya Pradesh is the first state to do this, he said.

Taking to Twitter, Chouhan expressed gratitude towards the Union Finance Minister stating that she has always shown interest in various schemes related to the development and welfare of the people of Madhya Pradesh and discussed them very positively.

"I express my heartfelt gratitude on behalf of the people of Madhya Pradesh for your continued cooperation," he said.

Chouhan also called on the Union Minister for Consumer Affairs, Food, and Public Distribution Piyush Goyal and discussed various issues related to crop procurement and public distribution system in MP.

He informed the Union minister that a special incentive is being given for the sowing of pulses in the state for crop diversification. This year's summer moong production is likely to be 16 lakh metric tonnes.

The Chief Minister urged Goyal to release around Rs 6,000 crore pending for several years, for Madhya Pradesh, at the earliest. Goyal assured the chief minister to provide all support.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, June 23 2022. 07:16 IST