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TMC MP Mahua Moitra Accuses Government of Cronyism and Tax Inequity

On Monday, March 24, 2025, in a striking address to the Lok Sabha, Trinamool Congress (TMC) Member of Parliament Mahua Moitra leveled serious allegations against the government, asserting that it has systematically favored crony capitalists at the cost of small businesses and laborers. She contended that the Centre’s tax policies are intricately designed to benefit a select group of corporate elites, leaving the broader spectrum of the economy gasping for support and fair representation.

Critique of Tax Policies

During a heated debate concerning the Finance Bill of 2025, Ms. Moitra specifically accused the government of crafting tax regulations that predominantly serve wealthy business interests while neglecting the economic challenges faced by ordinary citizens and small enterprises. She asserted, "All tax rules are written for Vishwakarma’s India, not Kuber’s India. But when it comes to crony capitalists, there are special rules," highlighting her belief that tax policy should aim for equitable treatment across all sectors.

Special Economic Zone Controversies

In her discourse, Moitra spotlighted a controversial instance involving a Special Economic Zone (SEZ) situated in Gonda, Jharkhand. She described the situation as one where a certain businessman received profound benefits which, according to her, were unnaturally conferred.

According to Moitra, “In 2016, a rule explicitly stated that no SEZ could solely comprise a power plant. However, for a very special friend of the government, this regulation was overlooked.” She pointed out that this specific businessman not only amassed billions during the initial capital expenditure stage but also continued to enjoy extensive benefits like a waiver of import duties on coal, exemption from coal cesses, and no obligations related to domestic supply.

Moitra estimated that the advantageous policies implemented for this businessman resulted in savings on the clean energy cess alone amounting to ₹320 crore annually, while other customs and GST concessions compiled an additional ₹2,000 crore. She further pressed the question of whether the government had taken steps to recover any overdue interest and taxes originally intended for SEZs.

Allegations of ‘Tax Terrorism’

Moreover, Ms. Moitra accused the government of engaging in what she termed "tax terrorism," arguing that not only large corporates but also stock market investors and small business owners have become victims of oppressive tax strategies. "The government’s taxation policies continue to magnify the stark chasm between two distinct Indias — Kuber’s India for the affluent elite and Vishwakarma’s India for the working class, who suffer the repercussions of rampant economic mismanagement,” she asserted.

Maha Kumbh Mela and Government Claims

Turning her focus to the recent Maha Kumbh, Ms. Moitra raised questions regarding the veracity of government claims concerning the event. “We have just experienced the spectacle of the Maha Kumbh, where the government is indulging in self-congratulation for orchestrating what it touts as the grandest event in human history. However, while the Uttar Pradesh government failed to account for the fatalities in the Kumbh stampede, it astonishingly declared that exactly 63 crore people bathed in the river — a figure that aligns with the entire adult population of India. This announcement is nothing but a mirage, paralleling the taxation illusion that this government has constructed,” she commented.

She also expressed deep concerns about the heavier tax burden faced by salaried individuals, underscoring that only a modest fraction of the populace carries the weight of income tax. “Out of 8 crore taxpayers, merely 56 lakh earn over ₹50 lakh per year. They represent the engines of India’s entrepreneurial and service sectors. However, the government’s recent move to exempt those earning below ₹12 lakh annually from taxation creates a narrower base to support our fiscal system. Meanwhile, indirect taxes on daily essentials persist at high rates, with no clear strategy in place for equitable wealth distribution,” she concluded.

Surveillance and Erosion of Rights

Shifting gears, Ms. Moitra accused the government of wielding surveillance powers under the pretext of tax enforcement. “Instead of clandestinely employing tools like Pegasus, the government has chosen to publicly engage in espionage under a shroud of suspicion. The new Income Tax law permits information sharing among ten different government agencies,” she noted, denouncing this invasion of privacy as unacceptable.

She further lamented the alarming reduction in social sector funding, highlighting a decrease in health expenditure from 2% of GDP to 1.94% over recent years. She pointed to the government’s failure to allocate rations to eight crore newly registered workers despite their contributions through GST, stating, “These individuals are responsible for generating ₹20 lakh crore in revenue yet are deprived of basic rations. Such inequity stands in violation of the Food Security Act.”

Transparent Governance and Electoral Accountability

Moitra’s criticisms extended to the Election Commission of India (ECI), arguing that it is failing to uphold democratic transparency. “The Election Commission habitually rejects calls for comprehensive VVPAT paper verification and continues to deny public access to Form 17C, while also failing to address the issuance of duplicate voter ID cards in places like Murshidabad and Gujarat,” she alleged.

She raised alarms over the reintroduction of electoral bonds in a new form, which had previously been deemed unconstitutional in 2024. “The new Income Tax Bill still retains provisions associated with electoral bonds. Is this merely negligent legislative work, or is it a calculated maneuver to facilitate backdoor political financing?” she queried.

Citing distressing data suggesting that companies operating at a loss had contributed ₹434 crore to the BJP while 41 businesses undergoing investigations had pumped ₹2,500 crore into party funds, she charged, “The CBDT should function as a cornerstone supporting India’s growth via transparent and progressive taxation, not devolve into another rogue agency resembling the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), both of which have transformed into systematic collection entities.”

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This understanding is particularly vital in the face of allegations like those presented by Ms. Moitra, as it provides a way for potentially affected parties to grasp the intricacies of regulations and take informed actions against any unfair practices or inequities they may encounter.

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Conclusion

In a climate of increasing economic inequality and perceived favoritism towards corporate interests, Moitra’s assertions echo a growing discontent among citizens, urging the need for more equitable policies. As the discourse progresses, the role of technology in enhancing understanding and transparency remains crucial in empowering the populace against bureaucratic complexities.

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