She also said that if such tax is imposed, it will probably be going back to that era when Congress imposed a 90% tax.
Finance Minister Nirmala Sitharaman slammed Congress over inheritance tax and said that India’s progress of the last decade will be erased if the law is imposed and it will also affect the middle and aspirational classes. She added that their hard-earned savings, invested in small savings and property, will be at risk.
Chairman of Indian Overseas Congress Sam Pitroda’s remark had sparked a huge controversy, where he earlier supported inheritance tax in India. From PM Modi to many other BJP leaders slammed the Congress and made it a big issue during the election campaign.
Nirmala Sitharaman On Inheritance Tax
Union Minister Nirmala Sitharaman highlighted how Inheritance Tax will directly hit the middle class and said ,”They work hard, sweat and toil of theirs are saved in small savings here and there, or they buy a house, a dream house, and keep some fixed deposits. All this is going to be exposed to the so-called property tax.”
Reminding the Congress about their past, she added, “After all, Congress’s reputation in terms of property tax goes back. And I remember earlier in 1968 there was a compulsory deposit scheme where people’s deposits were all 18%, 20%. Something was taken away. There was no justification given at that time… If such wealth creators are going to be punished purely because they have some money kept behind, India’s progress in the last ten years would just go for a zero. “
She also said that if such tax is imposed, it will probably be going back to that era when Congress imposed a 90% tax. She added, ”You’ll probably not believe that the current generation wouldn’t even remember or know anything about it. There was India where under the Congress rule we paid 90% of all that was earned by us as tax. That’s the socialist model which the Congress party is comfortable with…”
What Was Sam Pitroda’s Remark?
Pitroda was emphasizing the need for policy towards wealth redistribution, and elaborated on the concept of inheritance tax prevailing in America and stated that In America, there is an inheritance tax. If one has 100 million USD worth of wealth and when he dies he can only transfer probably 45 per cent to his children, 55 percent is taken by the government.
He added, “That’s an interesting law. It says you in your generation made wealth and you are leaving now, you must leave your wealth for the public, not all of it, half of it, which to me sounds fair.”
It sparked a huge controversy, after which PM Modi to many BJP leaders attacked on Congress, later which the party distanced themselves from the Pitroda’s statement.
(With Input From Agencies)
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