Allegations of Tax Evasion and Political Influence Under Modi Government

The Congress accuses the Modi government of undermining India's tax administration by overlooking large-scale tax avoidance among the affluent in exchange for donations. Citing a study by Dr. Ram Singh, the paper reveals a disparity between reported incomes and wealth, indicating evasion by wealthy families.

In a strong critique of India's current tax administration, the Congress party has alleged that the Modi government has weakened the system's integrity. According to Congress General Secretary Jairam Ramesh, the government has allowed tax evasion by affluent individuals in exchange for donations to the ruling party.

Ramesh referenced a study by Dr. Ram Singh, Director of the Delhi School of Economics, which highlights significant tax avoidance among the wealthiest in India. The study points to a stark imbalance in the income-wealth ratio, particularly among the top 0.1% of families, who report only 2% of their wealth as income.

The Congress claims that instead of addressing systemic tax evasion, the government has leveraged political mechanisms to extort electoral donations, thus damaging the credibility of tax governance in India. The party suggests that substantial contributions to the BJP might facilitate overlooking significant tax evasions.

(With inputs from agencies.)