Inheritance tax “directly hits middle class,” according to Nirmala Sitharaman

Speaking on the current inheritance tax debate, Finance Minister Nirmala Sitharaman said that the middle class is negatively impacted by the tax, which undermines their hard-earned assets.

“The middle class is directly impacted by inheritance tax. They put in a lot of labor, and the sweat and tears they accumulate are either saved in little amounts here and there or used to purchase their dream home and maintain fixed deposits. “This will all be subject to the so-called property tax,” Sitharaman said after her vote.

Days after Sam Pitroda initiated a conversation on the inheritance tax, the tax gained attention and generated discussions. This is when her remarks occurred.

Speaking after her vote in the present Karnataka Lok Sabha elections in Bengaluru, Sitharaman raised worries about the effects of an inheritance tax on middle-class families that strive hard.

According to her, penalizing wealth creators just for continuing to save money might undo the progress made in the economy over the last ten years.

“I recall a mandatory deposit program that was in place earlier in 1968, when deposits had to be between 18% and 20% of total. Something was removed. At the time, no explanation was provided. “India’s progress in the last ten years would be nullified if wealth creators like them are penalized solely for having some money retained in reserve,” the Finance Minister said.

Sitharaman also highlighted a time during Congress rule when a 90% tax rate was enforced, highlighting the difference between this socialist paradigm and the present administration’s policy.

And it’s likely that we’ll be returning to the time when Congress levied a tax of 90%. It is unlikely that you will accept that members of the present generation have no memory of it at all. In India, while the Congress party was in power, we were required to pay taxes totaling 90% of our earnings. The Congress party is at ease with such socialist paradigm, according to Sitharaman.

With many candidates running in 14 seats, the Congress and the BJP-JD(S) alliance are engaged in fierce battle in the current Karnataka Lok Sabha elections.