A heated debate on wealth redistribution erupted in India on Wednesday when Prime Minister Narendra Modi criticized comments made by Indian Overseas Congress president Sam Pitroda regarding the potential discussion of an inheritance tax. Modi accused the Opposition party of plotting to seize wealth from those who have worked hard, even suggesting they would tax individuals “after death.”
Despite the Congress party’s attempts to distance itself from Pitroda’s remarks, former party president Rahul Gandhi weighed in, expanding on his earlier statements made in Hyderabad on April 6. Gandhi indicated that the Congress party aims to recover and redistribute wealth that he claims the Bharatiya Janata Party (BJP) has granted as loan waivers to a small group of wealthy businesspeople, totaling ₹16 lakh crore.
As both BJP and Congress leaders became embroiled in the debate, the topic of redistribution and inheritance taxes has taken center stage in India’s ongoing national elections. The timing of the debate coincides with the close of campaigning for the second phase of the seven-phase national polls, where 89 seats across 13 states are set to be contested on Friday.
Pitroda, in a video aired by news agency ANI, referenced inheritance taxes in the United States, suggesting that similar policies might be considered in India. He highlighted that in the U.S., a portion of a person’s wealth is inherited by the government upon their death, which he described as a fair way to redistribute wealth. India previously had an inheritance tax, but it was abolished in 1985 by VP Singh, who served as the finance minister under Rajiv Gandhi’s Congress government.
Prime Minister Modi responded to Pitroda’s comments by claiming that they reveal the Congress party’s intentions to take away the wealth of ordinary citizens. He stated that the Congress party’s “mantra was loot both during life and after life,” and suggested that these plans would harm the middle class and their families. The BJP’s criticisms align with Modi’s recent statements in which he accused the Congress party of seeking to redistribute both wealth and reservation benefits to Muslims.
As the controversy continues, the Congress party has clarified that it has no plans to introduce an inheritance tax, while the BJP emphasizes its opposition to such measures. The debate surrounding wealth redistribution and taxation is likely to remain a key issue as the national elections progress.
