AAP MP Alleges Pressure in Tax Bill Amid UPI Discussion

AAP MP Sanjay Singh alleges that the Taxation and Other Laws (Amendment) Bill, 2026, passed by Parliament under pressure from Donald Trump, aims to tax UPI transactions, misleadingly claimed to spare small traders as Finance Minister Nirmala Sitharaman provides unclear reassurances.

The Aam Aadmi Party's MP Sanjay Singh accused the government of succumbing to external pressures, particularly from US President Donald Trump, in the passage of the Taxation and Other Laws (Amendment) Bill, 2026. Singh raised concerns that the Bill, aimed at potentially taxing UPI transactions, does not clearly spare small traders, a claim made by Finance Minister Nirmala Sitharaman.

The government, Singh alleged, has taken a dubious stance on the matter. Despite Sitharaman's assurances that small businesses won't face taxes on UPI payments, Singh highlighted a contradiction in her statements regarding forming a committee to decide tax amounts, pointing out the absence of such provisions in the Bill.

In Parliament, after the Rajya Sabha returned the Bill with recommendations, Sitharaman clarified that the amendment only enables future electronic payment specifications and does not directly impose a tax. However, Singh warned that any trader tax burdens could ultimately affect common citizens reliant on digital payments.