Instead of cash transfers to the people, the government has done a “cruel” transfer from the people, former Finance Minister P. Chidambaram said on Wednesday after the government effected a hike in taxes on petroleum products.
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At an online press conference, Congress chief spokesperson Randeep Surjewala accused the Centre of adopting an “economically anti-national stance by fleecing ₹1.4 lakh crore through additional taxes on petroleum products”.
In a series of tweets, Mr. Chidambaram slammed the Centre for ‘squeezing’ and taking money out of people.
“New or higher taxes are justified only when the economy is booming. Tax burden on the middle class and poor is actually taxing distress. Governments should GIVE money to the people in times of distress, not SQUEEZE and TAKE money from the people,” he tweeted.
“We have been pleading for cash transfers from the government to the bottom half of the people/families. Instead governments are doing a REVERSE TRANSFER of money from the people to the government! Cruel.”
The former Finance Minister said new or higher taxes will ‘impoverish’ families further.
“Governments must borrow to meet their deficits, not impose higher tax burdens when economic activity has ground to a halt,” he said.
Mr. Surjewala said the Centre must share 75% of this additional revenue with States so that people are not burdened.
“To fleece people of India in this fashion is economically anti-national,” he told reporters at an online press conference. “The government should transfer 75% of this money so collected through raise in taxes to States. This will ensure there is no further burden on people of India, by way of more taxes on petroleum products by States”.
He said the issue was discussed at a meeting of the Chief Ministers of Congress-ruled States with party president Sonia Gandhi, where former Prime Minister Manmohan Singh and former Congress chief Rahul Gandhi also expressed deep concerns.
“The ongoing battle with the coronavirus is causing severe economic hardship for our crores of brothers and sisters. At this time, instead of reducing prices, the decision of the government to raise prices of petrol and diesel by ₹10-13 per litre is unfair and should be withdrawn,” Mr. Gandhi tweeted in Hindi.
CPI general secretary D. Raja told The Hindu that “raising taxes at this time will have a cascading effect”.
“When taxes are increased, somebody has to pay the tax and finally it will be the common people who will have to take the burden,” he said.
CPI(M) leader Hannan Mollah said the government’s move to impose excise duty is “insensitive, cruel and exploitative”.
“Has the government passed these gains to vulnerable sections like farmers or migrant workers? Does it befit a government to profiteer?” asked Mr. Mollah.
