Sitharaman explains why she taxed super rich more

Chennai: Finance Minister Nirmala Sitharaman on Saturday said the tax on the super rich is a small expectation from them to contribute a little more for the poor.

She was here to inaugurate the International Business Conference of Nagarathars organised by the Nagarathar Chamber of Commerce. Sitharaman said not more than 5,000 people are there in the super rich category in the country and the Union Budget 2019-20 has several measures to help start-ups.

Stressing that the super rich should shoulder part of the government's responsibility in supporting the poor, she said it is not highway robbery or done with the intention to affect their business.

Appreciating Indian corporates for creating wealth and jobs, Sitharaman said over the past 60 years we have spoken about our rights but kept our duties to the minimum. She said the poor are doing their duty without any returns and hence the government is providing them free education, health and other benefits.

Sitharaman said the focus of the budget is to provide the youth the necessary support from the government, banks and others for doing business. According to her, the central government is focused on ease of living and also on ease of doing business.

On her carrying her budget papers in a swadeshi `bahi khata' and giving up the traditional briefcase, Sitharaman said the central government is not a suitcase carrying government. She said a suitcase denotes taking and giving of suitcases, alluding that suitcases contain bribe money.

Meanwhile, Finance Minister Nirmala Sitharaman Saturday said carrying a red-cloth bag instead of a leather suitcase on the budget day was an indication that the Narendra Modi government does not indulge in a culture of "exchanging suitcases".

On her maiden visit to Chennai after assuming office, she addressed members of the Nagarathar Chambers of Commerce as part of their International Business Conference, here.

In her speech, she heaped praises on the Nagarathar community for their business practices and said it became news that she was not carrying a leather suitcase on budget day.

Ahead of presenting the budget on July 5, Sitharaman carried a red-coloured cloth bag instead of a leather suitcase which went viral on various social media platforms.

"It became news that a leather suitcase was not carried. There is nothing in that ... It is an indication. It is a small message. Whenever I think of a suitcase, some other thoughts come up in my mind. Our government does not indulge in a culture of exchanging suitcases," she said amid huge applause from the audience.

"It was because of these reasons a suitcase was not carried. In this government, there is no necessity to carry a suitcase. In order to ensure transparency, this government floats tender system", she said.

"I took that bag just like carrying a file (before presenting the budget). It also became a controversy that I chose not to carry a suitcase because it was made of leather. No, I did not think that much Sir," she said.

Noting that a business is run successfully when entrepreneurs possess necessary skills, she said business practices that existed 15 years ago were not present today.

"MBAs are adapting to the Indian context, which is good. But I still find there is a gap. A farmer can make good produce from his agricultural land, but he may not have the marketing skills to make good business of his produce," she said.

Observing that the budget had given much importance to startups, she said when the government was ready to support entrepreneurs, it was also looking at them for imparting their skills.

"That is a valuable contribution. From the government of India point of view, India will grow only when youngsters and businesses are given the opportunity to grow. That is the main message," she said.

Referring to the proposed hike in the surcharge on income tax paid by super-rich individuals, Sitharaman said, "India is at a cusp where we want to eliminate poverty. We want to move towards a better India where everybody gets opportunities".

In her maiden budget speech, Sitharaman proposed to hike the surcharge on income tax paid by super-rich individuals.

While the Finance Minister appreciated India Inc. for being wealth and job creators, she said more tax was levied on the super-rich to share the burden of the government.

"One should not think that such a tax was introduced without giving a thought... We are not asking you not to do any business. We are just asking you to pay more," she said.