Congress Calls for New Tax on Billionaires to Bolster Public Services

India's Congress party has urged Prime Minister Narendra Modi to introduce a new tax on billionaires. This proposed tax aims to generate funds for essential public services, addressing income inequality and the country's pressing need for welfare programs, particularly in education and health.

India's opposition Congress party has called on Prime Minister Narendra Modi to impose a new tax on the wealthy to fund public services like education and health.

Finance Minister Nirmala Sitharaman will present the annual budget on July 23 against a backdrop of high income inequality and unemployment. Congress leader Jairam Ramesh claims a 2% tax on the wealth of India's 167 billionaires could generate 1.5 trillion rupees ($18 billion), or 0.5% of GDP.

Ramesh argued this revenue could transform schools, hospitals, and renewable energy projects. Wealth in the hands of India's richest 1% is now at its highest level in six decades, surpassing the US and Brazil, according to the World Inequality Lab.

Despite previous government resistance, Congress also demands clarity on India's stance at the upcoming G20 summit in Brazil, where a global tax on billionaires will be discussed.

(With inputs from agencies.)