A political storm has erupted in India over inheritance tax, reigniting a long-standing debate. The controversy stems from comments by Indian Overseas Congress president Sam Pitroda, who prompted Prime Minister Narendra Modi to accuse the Congress of planning to seize people’s wealth even after death. The Congress distanced itself from Pitroda’s remarks, while senior leaders alleged that the BJP has advocated for such a tax in the past.
The debate centers around the Estate Duty Act, which was scrapped in 1985. The act aimed to reduce economic disparity by imposing a tax on the total value of property held by an individual at the time of their demise. However, the tax faced criticism for valuation issues and double taxation. The Rajiv Gandhi government attempted to reintroduce revised legislation in 1989 but failed due to electoral loss.
Amid the current controversy, BJP leaders have accused Pitroda of revealing the Congress’s intentions, while Jairam Ramesh, Congress general secretary in charge of communications, cited statements by former BJP officials who supported inheritance tax. Ramesh pointed out that in 2014, Jayant Sinha, then minister of state for finance, publicly advocated for such a tax. He also mentioned that in 2018, then finance minister Arun Jaitley praised inheritance tax for “spurring large endowments to hospitals, universities in the West”.
The controversy comes amid a larger debate on wealth redistribution in India. The Congress has proposed a survey to determine which groups or communities control what proportion of resources, while the BJP alleges that this indicates a plan to redistribute these resources to Muslims.
The debate over inheritance tax is expected to continue in the lead-up to the 2024 general elections, with both the Congress and the BJP seeking to gain political advantage.
