Speaking up on the inheritance tax row, Union Finance Minister Nirmala Sitharaman warned that if India implements inheritance tax, it could erase the progress made in the last decade, potentially taking the country back to the era when the Congress party imposed a 90% tax.
She emphasised that such a tax would directly affect the middle and aspirational classes, whose hard-earned savings, invested in small savings and property like houses or fixed deposits, would be subject to additional taxation.
Finance Minister Sitharaman on the Inheritance Tax Row
Finance Minister Nirmala Sitharaman recently voiced her concerns over the tax policies advocated by the Congress party, cautioning that they could undermine India’s progress. She criticised Congress for favouring a “socialist model” reminiscent of past eras, where high taxes were levied on citizens. Sitharaman highlighted a scheme from 1968, where people’s deposits faced significant deductions without adequate explanation.
She emphasised the potential repercussions of implementing an inheritance tax row, akin to Congress’s proposal, suggesting it could reverse the progress achieved in the last decade. Sitharaman pointed out that such taxes directly impact the middle and aspirational classes, whose savings, invested in properties and fixed deposits, would be adversely affected.
Furthermore, Sitharaman accused the Congress party of targeting Prime Minister Narendra Modi with personal attacks, alleging their lack of positive agendas for national development. She stressed the importance of stable governance and urged citizens to vote for progress and development under Prime Minister Modi’s leadership.
Sam Pitroda Sparked Inheritance Tax Row
During a TV debate, Indian Overseas Congress chairman Sam Pitroda recently ignited a debate by mentioning the concept of inheritance tax. He stated that if someone possesses $100 million worth of wealth and passes away, only 45% of it can be transferred to their children, with the remaining 55% claimed by the government. Pitroda viewed this law as intriguing, suggesting it’s equitable for individuals to leave a portion of their wealth for public benefit.
However, Pitroda’s statement stirred controversy, with the BJP promptly seizing upon it. The Congress party distanced itself from his remarks, and Pitroda offered a clarification. He explained that he was simply citing the inheritance tax in the US as an example during a casual conversation on TV. Pitroda emphasised that his comments were not reflective of any party’s policy, including that of the Congress.
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