'Come clean before 30 Sept': PM Modi cautions tax evaders on Mann Ki Baat

On Sunday, Prime Minister Narendra Modi’s metamorphosis from a pro-capitalist leader to one pursuing socialist agenda appeared to be seamless. In his monthly address to the nation, known as “Mann Ki Baat”, Modi cautioned tax-evaders and requested them to comply with the tax regime, or to be prepared to face the music. He burnished his socialist credentials by recalling the “excesses of emergency and incarceration of Jayaprakash Narayan”, imposed by Indira Gandhi 42-years back on 25 June. Modi’s speech incidentally, came a day after the country recalled and marked the anniversary of the emergency imposed, and the subsequent persecution. [caption id=“attachment_2439916” align=“alignleft” width=“380”] PM Modi. Image courtesy: PIB[/caption] Apart from touching on sundry issues that concerned science, entry of women fighter pilots and the cleanliness drive, Modi devoted his exposition mostly to send out a warning to tax-evaders, loud and clear. He pointed out that the government has given an exemption till 30 September to all tax-evaders – to disclose their assets and income – to come clean. In a tone carrying unmistakable toughness, Modi said, “after 30 September, if people come to grief on account of non-compliance with the tax regime, the government cannot help.” Providing statistics on high tax-payers in the country, he said that in a country of 1.25 billion people, only 1.5 lakh people were accounted for as earning an annual income beyond Rs 50 Lakh. “This is preposterous,” he said, adding that in big cities, there are lakhs of people who earn beyond this income limit. “This is evident when you look at the houses they live in,” the PM said. Explaining the reason behind taking up this issue in his monthly radio address, Modi said that he wanted to give people a chance to show their willingness to comply with the law. Referring to his meetings with the country’s top revenue officials, he said that he had instructed tax officials to desist from harassing people, and to trust them till proven otherwise. “I assure you that if you comply with the regime before 30 September, you will neither face any inquiry nor will you be asked about your source of income,” Modi said. In a move that may have political implications, Modi was all praise for people belonging to the lower and lower-middle class, in his address on Sunday. He referred to some cases in particular, to highlight their contribution in nation-building. He referred to Chandrakant Kulkarni, a pensioner living on a Rs 16000 pension, who contributes Rs 5000 every month. Quite clearly, Modi was emphatic in his assertion that higher-income groups need to fall in line – the sooner the better. Apparently, Prime Minister’s caution to tax-evaders – though concealed in a polite language – appeared to be the toughest ever, since the time when VP Singh launched a vigorous campaign against tax-evasion as finance minister during Rajiv Gandhi’s regime. Modi was quite unambiguous in his assertion that the government was determined to bring those not complying with the tax-regime to book. He gave enough indications of launching a nationwide campaign, if the exemption scheme till 30 September fails to bring desired results. There is little doubt that such a campaign is bound to make people that fall into these high groups quite jittery, but, at the same time, it would also get appreciation from a large section of the society, which is beyond the income tax net. VP Singh’s political success in 1989 clearly rested on his relentless campaign against capitalists, and earned him the sobriquet of “Mr Clean”. In fact, he appeared cleaner than his own prime minister, Rajiv Gandhi, and ultimately stood up against him. Modi has, however, taken up this initiative himself, and has issued a warning to India’s super-rich in a manner that may have positive resonance among a large section of the society. At the same time, it would make it difficult for his adversaries to paint his term as a pro-capitalist regime. In all probability, he is unlikely to go the ‘VP Singh-way’ – to target big corporate houses. The message is aimed more towards those who thrive on illegal incomes and avoid the tax net, leading happy lives at the expense of national development. Now, it seems that the gala for tax-evaders is going to be over soon, if Modi’s “Mann ki Baat” is any indication.