Why is govt taking away my profits? Sitharaman says we are SLEEPING partner | VIDEO

New Delhi: Union Finance Minister Nirmala Sitharaman has stirred controversy with her response, "Sleeping partner cannot answer," to a broker's question about taxes at a BSE event. The remark has drawn criticism from various quarters, including the Congress party.

BSE event interaction

On May 16, during the ‘Vision for Indian Finance Markets’ event at the Bombay Stock Exchange (BSE) in Mumbai, a broker questioned Sitharaman about the high taxes imposed on stock market brokers and real estate transactions. The broker highlighted the numerous taxes levied on trades for retail investors, including GST, IGST, stamp duty, STT, and long-term capital gains tax. He pointed out that the government earns more from these transactions than the brokers themselves.

Brokers' concerns on taxation

The broker expressed frustration over the high taxation, likening the government to a “sleeping partner” who reaps profits without taking risks. He stated, “I am investing everything. I am taking all the risks but the Centre is taking away the entire profit of mine. You are my sleeping partner, I am a working partner with my finance, I risk my staff everything, so what do you want to say on this?”

Sitharaman's response

Sitharaman’s response, “A sleeping partner cannot answer sitting here,” was met with criticism. Her remark was perceived as dismissive at a time when public concern over high taxes is significant.

Nirmala Sitharaman reaction, 'out of syllabus question aa gaya' pic.twitter.com/Ljh1PXekVx

— Gabbar (@Gabbar0099) May 16, 2024

Public and political reactions

The Congress party was quick to criticize Sitharaman, accusing the Modi government of being indifferent to the public's tax burdens. Social media users also weighed in, with some echoing the broker’s concerns. Parin Seth on X wrote, “@nsitharaman ma’am this is a very valid question. Not to troll but I sincerely hope that the govt will look into some practical difficulties faced by the citizens if it comes back to power for the next 5 yrs. Stamp duty should be waived if the entire money is paid by cheque.”

Others, however, mocked the minister’s response, with comments such as, “You have a good question, but your question hurt me.”