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Prime Minister Narendra Modi today slammed the Congress over Sam Pitroda’s “inheritance tax” remarks saying that the “Congress loots people even after death”. During an election rally at Chhattisgarh’s Surguja, PM modi said the Congress’s “dangerous intentions are coming out in the open”.
“The advisor of the prince of the Congress royal family had earlier said that the middle class should be taxed more. Now they have gone further ahead. Now the Congress is saying that it will impose an Inheritance Tax and tax the inheritance received by people from their parents,” he said.
In response to the BJP’s allegations that the Congress is planning a redistribution of wealth, senior leader Sam Pitroda stressed that the party manifesto is very well-drafted and accused the PM of “stories up on your own”.
The manifesto calls for a nationwide socio-economic and caste census. It does not, however, mention any wealth redistribution plan.
However, when he cited the example of an inheritance tax in the US, it certainly added fuel to the fire that the Congress has been trying to douse.
“The wealth you accumulate with your hard work won’t pass down to your children. The Congress’s hand will snatch it. The Congress’s mantra is ‘loot during your lifetime, loot after your death’,” the Prime Minister said.
“As long as you live, Congress’s high taxation will make you suffer. When you are dead, they will put the burden of inheritance tax,” he said.
The Congress has distanced itself from Pitroda’s remarks saying they do not reflect the party’s position. Congress leader Jairam Ramesh said that “sensationalising” those comments is aimed at “diverting attention” from PM Modi’s “malicious and mischievous election campaign”.
Pitroda has clarified that he made the remarks as an individual and claimed that his comments were twisted to suit their narrative.
“I mentioned inheritance tax in the US only as an example in my normal conversation on TV. Can I not mention facts? I said these are the kind of issues people will have to discuss and debate. This has nothing to do with policy of any party, including Congress,” he said. “Who said 55% will be taken away? Who said something like this should be done in India? Why is BJP and media in panic?”
While speaking to a news agency on PM Modi’s communal speech and his allegations of a wealth redistribution plan, Pitroda, who is the chairman of Indian Overseas Congress, said the PM thinks that the Indian audience is a fool and can be manipulated easily.
“No Prime Minister would speak like this. Earlier I thought it was an AI-generated video. PM thinks the Indian audience is a fool and can be manipulated. He is not above the law. The manifesto of Congress is very well-drafted. To say that they will steal your gold and Mangalsutra. You are making stories up on your own. I think it is maybe due to fear, panic has been set in after the first phase. India is angry at the PM’s comment,” he said.
The Congress has always focused on the people at the bottom of the economic pyramid, whether they are OBCs, Muslims, Dalits or tribals, he said. “Billionaires don’t need our help. It is the poor people who need our help. Inequality has substantially increased in the last 10 years,” he added.
“This doesn’t mean that you are going to take your wealth and give it to somebody. This means to create new policies so that the concentration of wealth can be prevented. It’s like a Monopoly Act,” he said.
But the comment that was lapped up the BJP came later.
“In America, there is an inheritance tax. If one has 100 million USD worth of wealth and when he dies he can only transfer probably 45 per cent to his children, 55 per cent is grabbed by the government. That’s an interesting law. It says you in your generation, made wealth and you are leaving now, you must leave your wealth for the public, not all of it, half of it, which to me sounds fair,” he said.
In the United States, there is no federal inheritance tax, but several states, including Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania, impose taxes on inherited assets. The tax rate varies based on the value of the inheritance and the relationship to the deceased. Typically, this tax is levied only if the inheritance exceeds a specified threshold, with rates reaching nearly 20 percent of the inherited amount.
Pitroda said that this is a policy issue. “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. Today, rich people don’t pay their peons, servants, and home help enough, but they spend that money on a vacation in Dubai and London,” he said.
The BJP used Pitroda’s remarks to sharpen its assault on the Congress. Home Minister Amit Shah urged the people 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 survey from its manifesto,” he said. “Our priority is not the minorities. Our priority is the poor, Dalits, tribals and backward sections,” he added.
Assam Chief Minister Himanta Biswa Sarma shared a video of the interview with the post, “Family Advisor is spilling the beans – their intention is ‘organised loot and legalised plunder’ of your hard-earned money.”
BJP’s IT cell chief Amit Malviya posted, “Congress has decided to destroy India. Now, Sam Pitroda advocates 50% inheritance tax for wealth redistribution. This means 50% of whatever we build, with all our hard work and enterprise, will be taken away. 50%, besides all the tax we pay, which too will go up, if the Congress prevails.”
BJP spokesperson Jaiveer Shergill, who was earlier with the Congress, said the “cat is out of the bag”. “Rahul Gandhi’s main advisor Sam Pitroda ‘hua to hua’ Fame proposes “inheritance tax” like US where Govt takes 50%+ of your wealth! Voting for Congress = Losing your Money + Property + Belongings! Voters be aware, property snatchers are here!” he posted on X.
To contain the fire that threatened to burn the Congress, Jairam Ramesh posted, “Sam Pitroda has been a mentor, friend, philosopher, and guide to many across the world, including me. He has made numerous, enduring contributions to India’s developments. He is President of the Indian Overseas Congress.”
“Mr Pitroda expresses his opinions freely on issues he feels strongly about. Surely, in a democracy an individual is at liberty to discuss, express, and debate his personal views. This does not mean that Mr. Pitroda’s views always reflect the position of the Indian National Congress. Many times they do not,” Mr Ramesh clarified.
“Sensationalising his comments now and tearing them out of context are deliberate and desperate attempts at diverting attention away from Mr. Narendra Modi’s malicious and mischievous election campaign; that is anchored ONLY in lies and more lies,” he said.
Congress spokesperson Supriya Shrinate clarified that the party did not impose any inheritance tax when it was in power. “Now you are trying to spread lies and create a bogey when there is none,” she said.
“Congress doesn’t believe in inheritance tax and we have never discussed or contemplated this. It’s actually Narendra Modi and his former finance minister Arun Jaitley who contemplated this, it’s their agenda,” she said.