It was during the 2014 general elections, that Congress leader Mani Shankar Aiyar referred to Narendra Modi as a ‘chaiwala, apparently in a bid to belittle Modi’s humble background and upbringing. However, Modi astutely turned this insult into a powerful campaign point, embracing and celebrating the label, emphasizing his journey from a tea vendor to the country’s leader. In fact, Modi’s ‘chai pe charcha’ programme sought to rub salt into the Congress wounds. Chai provided an instant connect to the masses, which was like trophy handed to BJP on a platter.

In the 2017 Gujarat Assembly elections, Mani Shankar Aiyar made another controversial remark, calling Modi a “neech admi” (lowly person). Modi was happy to seize the opportunity to portray himself as a victim of elitist attitudes. He positioned himself as a representative of the common people, fighting against the condescension of the political elite.

In the 2019 Lok Sabha elections, Rahul Gandhi coined the phrase ‘chowkidar chor hai’ (the watchman is a thief) to attack Modi over the Rafale aircraft deal. Modi responded by launching the ‘main Bhi Chowkidar’ (I am also a watchman) campaign. He rallied his supporters, emphasizing that he was safeguarding the nation’s interests. Chowkidar became synonymous with Modi’s leadership.

During the ongoing Lok Sabha elections, when BJP was struggling to find a sold campaign point, juggling between Modi guarantee, Pran Pratishtha at Ram Mandir, Article 370, Katchativu and what not, Congress again provided a heaven-sent cause: the inheritance tax. Although there is nothing earth-shattering about it, Modi has managed to spin a new narrative around it, combining his campaign strategy to create a communal divide by asserting that the Congress party is bent upon collecting ‘your’ wealth and redistributing it to ‘them’.

Modi and the BJP leaders swiftly capitalized on this, portraying the Congress’s stance as an attack on hardworking individuals and their right to pass down wealth to their heirs. They framed it as a battle between pro-growth policies and wealth redistribution.

The proposal has reignited a decades-old debate. This policy finds its roots in the past, with India having implemented an inheritance tax from 1953 to 1985. The original Estate Duty Act aimed to curb wealth concentration and promote equality. However, its effectiveness fell short of expectations. The tax structure, with rates reaching up to 85%, was criticized for its complexity.

Disparate valuation rules for different assets led to legal disputes, further straining the system. More importantly, the revenue generated remained negligible compared to the administrative costs. Individuals found ways to circumvent the tax, resorting to asset concealment and benami transactions. Additionally, the tax overlapped with the wealth tax, leading to accusations of double taxation.

The BJP argues that a wealth transfer tax would discourage investment and entrepreneurship, hindering economic growth. It emphasizes the importance of a business-friendly environment and portrays the Congress as out of touch with the needs of the wealthy, who are seen as key drivers of the economy.

This narrative resonates with a segment of the population that views inheritance as a reward for hard work and a right to be passed on to future generations. They fear that the tax would erode individual financial security and discourage wealth creation. The BJP taps into this sentiment, portraying itself as the defender of these traditional values.

The Congress, on the other hand, counters that a well-designed wealth transfer tax can address income inequality without stifling economic growth. They point to examples of other developed nations where such taxes exist alongside thriving economies. The Congress argues that the tax would generate revenue for social welfare programs and promote a more equitable distribution of wealth.

Proponents of the abolished tax point out that its failure stemmed from poor implementation rather than the concept itself. They argue that a well-designed inheritance tax could help reduce wealth inequality and generate much-needed government revenue. Wealth inequality is a growing concern in India, with the richest 1% holding a disproportionate share of the country's wealth. An inheritance tax, they argue, could help redistribute wealth and create a more equitable society. (IPA Service)