A Debate on Wealth Redistribution
The concept of inheritance tax has sparked debate in India, with prominent figures like Zerodha co-founder Nikhil Kamath and Prime Minister Narendra Modi voicing their opinions.
In a 2022 discussion with Mint newspaper, Kamath advocated for an inheritance tax, citing its potential to redistribute wealth and bring more people under the tax net. He argued that a portion of wealth should be filtered and redistributed when transferred between generations, as seen in countries like South Korea, the United States, and the UK.
Sam Pitroda, Chairman of the Indian Overseas Congress, echoed Kamath's sentiment, highlighting the absence of inheritance tax in India and advocating for policies promoting wealth redistribution. He pointed to the US inheritance tax model, where a substantial portion of an individual's wealth is taxed upon inheritance.
Prime Minister Narendra Modi strongly opposed the idea of inheritance tax, accusing the Congress party of harboring "dangerous intentions" to seize assets and rights from the people. He criticized Pitroda's suggestion, claiming it would impose more tax on the middle class and those who earn through hard work.
The debate surrounding inheritance tax in India continues, with proponents arguing for its potential to promote economic equality and opponents expressing concerns about its impact on individual wealth and investment. The government has not yet taken a definitive stance on the issue, leaving the future of inheritance tax in India uncertain.