New Delhi, Mar 24 (PTI) TMC MP Mahua Moitra on Monday accused the government of favouring crony capitalists at the expense of small businesses and workers, claiming the Centre's tax policies are designed to benefit select corporate interests. Speaking in the Lok Sabha during a discussion on the Finance Bill 2025, Moitra alleged that the government has created special rules to benefit certain businessmen while neglecting the needs of the broader economy.

"All tax rules are written for Vishwakarma’s India, not Kuber’s India. But when it comes to crony capitalists, there are special rules," she said.

The TMC MP pointed to the case of a Special Economic Zone (SEZ) in Gonda, Jharkhand, where she alleged that a particular businessman received undue benefits.

“In 2016, a rule stated that there could be no SEZ that only had a power plant. But for a very special friend, this was allowed," she said.

Moitra said the particular businessman did not just receive billions during the capital expenditure phase but also enjoyed ongoing benefits — no import duty for coal, no coal cess and no domestic supply obligations.

The savings on clean energy cess alone amounted to Rs 320 crore per annum, while customs and GST benefits added another Rs 2,000 crore, she alleged.

Moitra questioned whether the government had recovered the back interest and taxes that were initially meant for SEZs.

The TMC MP also accused the government of engaging in "tax terrorism", stating that stock market investors, corporates and small business owners have all been victims.

“The government’s taxation policy continues to widen the stark divide between two Indias — Kuber’s India for the elite and privileged and Vishwakarma’s India for the working class, who bear the brunt of economic mismanagement,” she said.

Taking aim at the government’s recent celebration of the Maha Kumbh, Moitra claimed that official figures on attendance were inflated.

“We have just finished the spectacle of the Maha Kumbh, where the government is patting itself on the back for organizing the grandest event humanity has ever seen. Yet, while the UP government failed to count the number of deaths in the Kumbh stampede, it miraculously declared that precisely 63 crore people bathed in the river — equal to the entire adult population of India. This is nothing but a mirage, much like the great taxation mirage created by this government,” she said.

Moitra also raised concerns about the tax burden on salaried individuals and said only a small fraction of the population bears the income tax load.

“Out of 8 crore taxpayers, only 56 lakh earn more than Rs 50 lakh per annum. These are the engines of India’s entrepreneurial and service economy. Yet, the government has now exempted those earning up to Rs 12 lakh per annum from tax, meaning an even smaller base is funding the system. Meanwhile, indirect taxes on essential commodities remain high and there is no roadmap for fair wealth distribution,” she said.

The TMC leader also accused the government of using surveillance powers under the guise of tax enforcement.

“Instead of using Pegasus secretly, the government is now openly spying in the name of suspicion. The new Income Tax law enables information sharing across 10 government agencies,” she said.

Moitra criticized the declining social sector spending, noting that health expenditure has fallen from 2% of GDP to 1.94% in recent years.

She also pointed to the government’s refusal to provide rations to eight crore newly registered workers on the e-shram portal.

“These people are paying GST, contributing to Rs 20 lakh crore in revenue, yet they are being denied rations. According to the Food Security Act, this kind of inequity is unacceptable,” she said.

Moitra questioned the government’s commitment to democratic principles, alleging that the Election Commission was failing in its duty to maintain transparency.

“The EC refuses to provide 100 per cent VVPAT paper verification, refuses to make Form 17C public and refuses to explain duplicate voter ID card issuance in places like Murshidabad and Gujarat,” she said.

The TMC MP also raised concerns about the return of electoral bonds in another form despite it being struck down as unconstitutional in 2024.

“The new Income Tax Bill still contains provisions related to electoral bonds. Is this just shoddy legislative work or is it a deliberate move to keep the door open for some form of backdoor political funding?” she asked.

Moitra cited data showing that companies with negative profits had donated Rs 434 crore to the BJP, while 41 companies under investigation had contributed Rs 2,500 crore.

“The CBDT should be an engine for India’s growth through transparent and progressive taxation. Please do not turn it into another rogue agency like the ED and the CBI, which have become professional collection agents,” she said.

BJP MP Nishikant Dubey interjected and challenged Moitra’s accusations against the Enforcement Directorate (ED) and the CBI.

“She has made a serious allegation that the ED and CBI act as collection agencies for the government. I urge her to provide evidence. If she cannot, these remarks should be expunged or a privilege motion should be moved,” he said. PTI UZM AS AS