Did Congress say it will implement the inheritance tax if it comes to power?

Fact Check: The war of words between the BJP and the Congress has intensified amid the campaign for the second phase of the Lok Sabha polls. While addressing a rally in Chhattisgarh on Wednesday, Prime Minister Narendra Modi launched an attack on the Congress over the grand party’s alleged plan to implement Inheritance Tax if it comes to power. Prime Minister Modi said: “Congress says it will implement inheritance tax, it will introduce a tax on inheritance received from his mother and his father.” He added, “The Congress matra is ‘Congress Ki Loot, ZIndagi K Saath Bhi, Zindagi K Baad Bhi’.”

You can view the archived version of the publication. here.

The Prime Minister’s comments have created a stir on social media platforms. Several X users shared the video of the prime minister denouncing Congress’s alleged plan to implement the Inheritance Tax.

These posts can be viewed. here, here and here.

What is inheritance tax?

The Inheritance Tax is a tax that taxes the assets/estate of a deceased person and that will be distributed among his or her heirs. Several countries, such as Japan, the United States and France, impose such taxes.

Verification/Fact Check

A keyword search for “Inheritance Tax” and “Congress” on Google led us to multiple reports indicating that a comment by Overseas Indian Congress President Sam Pitroda on the inheritance tax in the US was wrong. USA during an interview with the news agency ANI instigated a political row.

How it started

Sam Pitroda was interviewed by news agency ANI on April 24, 2024. The full video of the same was shared on his YouTube channel with the title “Is Congress advocating inheritance tax in India? “Sam Pitroda gives a great clue in this interview”

A X publication of the ANI news agency, dated April 24, 2024, included an excerpt from his interview with Pitroda. In the video, the interviewer is heard saying: “…but sir, one thing is that… the Prime Minister is pointing out the promise made by Congress leader Rahul Gandhi or in the manifesto… if the Congress party will be chosen to come to the power, the party would conduct a survey to ascertain who owns the wealth in the country, and undertake an exercise to redistribute it…among the people…”

Then he adds: “Let me tell you that in the United States there is an inheritance tax. So, let’s say one has wealth worth 100 million dollars and when he dies he can only transfer probably 45% to his children. 55% is in the hands of the government. That’s an interesting law. He says that in your generation, you made wealth, you are leaving now, you should leave your wealth to the public, not all, but half, which seems fair to me. In India you don’t have that. If someone is worth 10 billion and dies, his children will receive 10 billion, the public will receive nothing. The law says you get half and the public gets half. (sic)”

“So these are the kinds of issues that people will have to debate and discuss. I don’t know what the conclusion would be at the end of the day, but when we talk about redistributing wealth, we are talking about new policies and new programs that are in the interest of the people and not in the interest of the super-rich. just (sic),” she says.

It is clear from the video that Pitroda was giving an example of a tax in the US, as mentioned in the Monopoly Act, and was not proposing any such tax for India.

He mentioned the US inheritance tax only as an example: Pitroda issues clarification

As the row over the inheritance tax escalated, Sam Pitroda said his comments were misrepresented by the “godi media”. In a series of X publications, Pitroda fixed, “It is unfortunate that what I said as an individual about the inheritance tax in the US is being twisted by the Godi media to divert attention from the lies the Prime Minister is spreading about the Congress manifesto. The Prime Minister’s comments on Mangal Sutra and gold snatch are simply unrealistic. (sic)”

He said: “I mentioned the American inheritance tax in the US just as an example in my normal conversation on television. Can’t I mention facts? I said these are the kinds of issues that people will have to discuss and debate. This has nothing to do with the politics of any party, including Congress. (sic)”

And he added: “Who said that they will take 55% from us? Who said something like this should be done in India? Why are the BJP and the media in panic? (sic)”

No mention of inheritance tax in Congress’ Nyay Patra

We flip through the ‘Taxes and Tax Reforms’ section of the Congress manifesto for the Lok Sabha polls. It mentions the promulgation of a Direct Tax Code, removal of Angel tax, reduction of tax burden on MSMEs owned by individuals and associated companies, and redesign of the GST council, among others. However, we find no mention of any inheritance tax, nor any tax on ancestral wealth.

The word “inheritance” is only found once in the document. In the women’s empowerment section, the party promises: “In matters of marriage, inheritance, inheritance, adoption, guardianship, etc., women and men should have equal rights. “We will review all laws and guarantee quality between men and women.”

Party, Accounts Of Senior Leaders X Do Not Mention Inheritance Tax

Us skimmed through the official account X of the Indian National Congress, and found no mention of the implementation of the Inheritance Tax if the party comes to power. An advanced search with X also did not return any posts that included the term “Inheritance Tax.”

The X accounts of the president of Congress Mallikarjun Khargeand senior leaders Priyanka Gandhi and Raul Gandhi nor did they make any mention of an “inheritance tax.”

Furthermore, no recent report indicates that any senior member of Congress has suggested the implementation of Inheritance Tax in India.

Notably, during UPA 2.0, Congress leader and then Union Minister P Chidambaram reportedly mooted the idea of ​​implementing an inheritance tax due to the low tax-GDP ratio in the country. “We are really underestimating our ability to raise resources, especially tax resources. Since off-plan spending is difficult to contain, the tax-to-GDP ratio must be increased, especially by taxing conspicuous consumption and levying an inheritance tax,” he said.

However, the same never materialized.

Property Rights Act, 1953 abolished during Rajiv Gandhi government

An inheritance tax was levied in India under the Wealth Tax Act, 1953. However, it was abolished in 1985 by the Congress government led by Rajiv Gandhi. VP Singh, who was then Finance Minister of the country, was of the view that the law had failed to bring balance in the society or reduce the wealth gap.

When BJP leaders mentioned inheritance tax

On multiple occasions, BJP leaders have also spoken about the benefits of Inheritance Tax. A 2014 report claimed that the BJP’s Jayant Sinha favored a form of inheritance tax on wealth that the rich passed on to their descendants after his death.

According to reports, at the end of 2018 Arun Jaitley had said that hospitals, universities and other institutions abroad have been receiving huge donations due to the inheritance tax. However, it is not the same scenario in India.

Multiple reports in 2019 suggested that the Modi government could reintroduce the inheritance tax.

‘There is no plan to introduce inheritance tax, nor a manifesto’: Congress leaders clarify

Congress president Mallikarjun Kharge clarified that his party has no intention of implementing Inheritance Tax. “There is a constitution, we have no intention. Why do you put their ideas in our mouths? Just for votes, he is playing all these games…,” Kharge told reporters at a press conference in Kerala.

Clarifying the party’s position, congressional representative Jairam Ramesh declared: “Congress has no plan to introduce an inheritance tax. In fact, Prime Minister Rajiv Gandhi abolished the Wealth Tax in 1985.”

Shashi Tharoor said: “…Nowhere (the Congress manifesto) does it talk about taking anyone’s gold and snatching the mangalsutra from women…Sam Pitroda is not in the manifesto committee. This is not part of our agenda… It is his personal opinion. “You cannot take anyone’s personal opinion and say that this will be the intention of the Congress party.”

Conclusion

There is no evidence to show that Congress has said it plans to implement the Estate Tax. The tax was mentioned by Congressional leader Sam Pitroda in an interview, who clarified that he was giving an example of a tax in the United States. Furthermore, party president Kharge and other leaders have rubbished the claim. There is no mention of any such tax in the Congress manifesto.

This story was originally published by Newschecker.in, as part of the Shakti Collective. Except for the headline, excerpt and opening introductory paragraph, this story has not been edited by ABPLIVE staff.

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