We will 'remonetise' what Modi demonetized: Rahul Gandhi, says will scrap 'angel tax'

Congress President Rahul Gandhi Thursday said the party's promised minimum income scheme for the poor will remonetise the economy 'damaged' by Prime Minister Narendra Modi's demonetisation, asserting the anti-poverty poll pledge has thrown the BJP in 'total disarray'.

Gandhi also said the 'angel tax' for startups will be scrapped if Congress comes to power, calling it 'draconian'.

In an exclusive interview to PTI ahead of the 17th Lok Sabha elections beginning April 11, Gandhi said 'Nyay' -- the world's "biggest scheme" for poor -- will trigger a powerful economic cycle of consumption and production in the country that would fire up the economy.

He stressed that the scheme will not be implemented "rashly like the demonetization and GST of the BJP".

Gandhi's big-bang promise of giving Rs 72,000 annually to each of the 5 crore poor families of the country on Monday came against the backdrop of criticism of the Modi government on joblessness, farm distress and slowdown in rural economy.

The scheme is being seen as a bid by the main opposition party to change the poll narrative to real issues as against attempts by the ruling BJP to whip up nationalist sentiments.

Touching upon a wide range of issues relating to the economy, Gandhi, 48, said Congress will abolish the existing 'angel tax' imposed on start-ups, ensure that new ventures do not require any regulatory permissions for three years and get easy access to bank credit.

Angel tax is levied on investment in start-ups.

"We've said that we will remove the draconian and ill-conceived angel tax. I've made that commitment and it's going to be done," Gandhi said.

Gandhi said promoting domestic industry will be a key priority for the Congress and it will ensure that all new businesses are freed from the clutches of red tape to give a boost to the economy.

On 'Nyay', he said it has twin objectives of giving money to the 20 per cent poorest families in India and remonetising the economy "damaged" by demonetisation.

"What the PM has done over the past five years is to remove all money from the economy with failed policies like demonetisation and a poorly executed Gabbar Singh Tax (GST). Informal sectors have been badly hit.

"The aim of the 'Nyay' scheme is two-fold. First is to guarantee a minimum income to the bottom 20 per cent families. The second is to remonetise the economy that has been demonetised by Modiji," Gandhi said.

The Congress chief said the scheme was going to dramatically increase economic growth by putting money in the hands of the poorest of the poor, and rejected apprehensions that it will put increase fiscal deficit.

To a question on the scheme being prima facie populist, Gandhi said "it is not a populist measure as projected by some critics".

"If giving out Rs 3.5 lakh crore to 15 people by Narendra Modi is not considered populist, why should this be as it is aimed at benefitting the poor," he said.

"Is it only the crony capitalist friends of Mr Modi who are to benefit from government schemes? I'm only asking for fairness, for justice, or 'nyay' for India's poor. There's nothing populist about that," he countered.

"The ground breaking NYAY scheme has thrown the BJP in disarray."
Asked about apprehensions of some economists that 'Nyay', which entails an expenditure of Rs 3.6 lakh crore annually, could aggravate India's fiscal deficit position, Gandhi said, "No, that's not right."
Taking a swipe at Modi, who announced the demonetisation of high value currency notes in a surprise move in November 2016, Gandhi said, "We're not rash. We don't take steps like demonetisation and GST without consultations, without conferring with the experts. We have vetted this, tested this, and fiscally 'Nyay' as a scheme is completely doable."