Due to senior Congress leader Sam Pitroda’s inheritance tax remark, economics took the centre stage as campaigning for Phase 2 of the Lok Sabha elections ended.
What did Pitroda say?
Pitroda, the president of the Indian Overseas Congress, sparked off a row when he termed inheritance tax an "interesting idea".
Countering Prime Minister Narendra Modi’s allegations that Congress plans to redistribute the nation's wealth, Pitroda citied a US example of inheritance tax law. "If a person has property worth US dollars 10 million, then after his death, 45 percent of the property goes to his children and 55 per cent of the property goes to the government," Pitroda told ANI.
Pitroda said that the subject of wealth distribution was a "policy issue" while underscoring the need for a "minimum wage" in India. "The Congress party would frame a policy through which the wealth distribution would be better. We don't have a minimum wage (in India). If we come up with a minimum wage in the country saying you must pay so much money to the poor, that's the distribution of wealth," he said.
His remarks came after Congress leader Rahul Gandhi's announcement on April 6 when he said that his party aimed to conduct a survey to assess wealth distribution across various demographics in the country.
Opposition, BJP react
While the Congress distanced itself from Pitroda’s remark, the BJP accused the grand old party of wanting to seize and redistribute the wealth of Indians. “They (Congress) want to snatch your assets and rights of your children,” PM Modi told an election rally in north Chhattisgarh’s Ambikapur.
However, Congress chief Mallikarjun Kharge said the party had no intention of bringing an inheritance tax. "There is a constitution, we don't have any intention of doing this. Why are you putting BJP's words in our mouths? They are just saying all this for votes," Kharge said.
Congress General Secretary (Communications), Jairam Ramesh said Pitroda's view does not reflect the stand of the party. "The Congress has no plan whatsoever to introduce an inheritance tax. In fact, Rajiv Gandhi abolished estate duty in 1985," Ramesh posted on X.
Union Home Minister Amit Shah urged Indians to take Pitroda's remarks seriously. "Their hidden plans have come out in the open. People should take note. And the Congress must withdraw the mention of the survey from its manifesto," he said. "Our priority is not the minorities. Our priority is the poor, Dalits, tribals and backward sections," he said.
Assam Chief Minister Himanta Biswa Sarma shared a video of Pitroda's interview with the post, "Family Advisor is spilling the beans - their intention is organised loot and legalised plunder of your hard-earned money”.
Family Advisor is spilling the beans - their intention is ‘organised loot and legalised plunder’ of your hard earned money. https://t.co/oJGcY5kimJ— Himanta Biswa Sarma (Modi Ka Parivar) (@himantabiswa) April 24, 2024
Pitroda, too, said that he made the remarks as an individual. He said it was unfortunate that the comments were twisted "to divert attention from what lies PM is spreading about Congress manifesto".
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!