Centre’s inclusion of IT refunds in economic package irks Opposition leaders, social media users
The finance minister said 14 lakh taxpayers benefited from clearing of Rs 18,000 crore refund dues.
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Finance Minister Nirmala Sitharaman on Wednesday announced the details of the Rs 20 lakh crore package as part of measures to combat the economic damage caused by the coronavirus outbreak. The minister said the announcements were based on the existing foundation of reforms.
“Within hours of lockdown, Pradhan Mantri Garib Kalyan Package was announced,” Sitharaman said at the press conference. “We ensured refunds of Rs 18,000 crore was given to all taxpayers...Ration also distributed to non-card-holders. Ujjwala gas connections were given, and cash transfers were made to Jan Dhan accounts.”
She highlighted that 14 lakh taxpayers benefited from clearing of the income tax refund dues. However, Opposition leaders and several social media users wondered how the money that the government anyway owed to the citizens was labelled as relief measure to combat the pandemic.
“What a ‘package’,” Communist Party of India (Marxist) Sitaram Yechury said in a tweet. “People’s own money, being packaged back to them as refunds and a boost! People’s own savings and income tax refunds being given back to them – How can this be a ‘stimulus’?”
Several other people on social media also criticised the government’s move
The government also announced that as part of other direct tax measures, all pending refunds to charitable trusts and non-corporate businesses and professions including proprietorship, partnership, limited liability partnership and co-operatives shall be issued immediately. Similarly, within next 45 days, all pending payments will be cleared for micro, small and medium enterprises, the finance minister said.
Here are some of the reactions:
What a 'package'! People's own money, being packaged back to them as refunds and a boost! People's own Savings and Income tax refunds being given back to them - How can this be a ‘stimulus’? https://t.co/y4SB8Irk3d
— Sitaram Yechury (@SitaramYechury) May 13, 2020
"Clearing of refund dues" ...so the money that the Govt owed us is now being labelled as relief by Govt!
— Gaurav Pandhi (@GauravPandhi) May 13, 2020
The tax refund is right of the people! https://t.co/poGx8JpWjA
A tax refund is what the Govt owes taxpayers and is sitting on. Is not stimulus in any way. https://t.co/90Crby8Uhg
— Krishan Partap Singh (@RaisinaSeries) May 13, 2020
I love how a government announcement that it will pay its outstanding bills is touted as a "reform" or a "stimulus" measure.
— Amy Kazmin (@AmyKazmin) May 13, 2020
₹20Lac Cr Package announced by FM is a “Loans Marketing Brochure” rather than a “Relief Oriented Rescue Plan”; Focus of package is “debt creation” & not “demand creation”-clearing of receivables & tax refunds is not stimulus-Govt misleading by Repackaging loans & dues as Relief
— Jaiveer Shergill (@JaiveerShergill) May 13, 2020
"Increasing liquidity in the hands of people" in simple words means:
— Meghnad (@Memeghnad) May 13, 2020
"We are taking less tax from you, OK? Also, we're going to refund the extra tax you paid a bit faster than before. Enjoy! And don't forget to thank the govt for sparing you during a global pandemic ♥️!"
What? Refund of income tax is not government scheme... and we are not beneficiaries.. we source deducted income tax, and as we paid extra, our money is returned to us...18,000 crore is our money.. don't count this as " part of package"... https://t.co/oVCIU8lGDy
— Rashmi#Witness#NoToCAB_NRC (@Ra_shmi_Tweets) May 13, 2020
Giving you your own due Income Tax refund is also a stimulus package
— Atul Modani (@atulmodani) May 13, 2020
Masterstroke 🚀#AtmaNirbharBharatAbhiyan
Seems Sitharaman's 20LCr package consists of Tax refunds (due anyway), 90KCr loans to Discoms, 3LCr loans to industry, 8L Cr of earlier announced liquidity for Industry etc. What to poor workmen? In name of labour reforms, all protection: ie Min wages,Maximum hours etc to go!Wow!
— Prashant Bhushan (@pbhushan1) May 13, 2020
First time in world history income tax refund is a part of government expenditure 😂😂👍🏻 pic.twitter.com/8rfQ8gOijf
— Ritesh (@RKjharkhand) May 13, 2020
Income tax refund is a right of the taxpayer. How can it be included in financial assistance?!
— Shrinivas Karkala (@s_karkala) May 13, 2020
Income tax refund is also part of package 😂😂😂🤣🤣🤣🤣🤣 https://t.co/lUFxaKteY3
— Abshar (@Aaabshar) May 13, 2020