Congress MP and Lok Sabha Leader of Opposition Rahul Gandhi on Wednesday demanded an immediate rollback of what he described as “UPI tax” — the framework that brings changes to how certain merchant transactions are charged when making a UPI payment.
The new framework introduces a 0.4 per cent merchant discount rate (MDR) on specified merchant transactions above ₹2,000, however, customers will not be charged MDR, according to the government.
Also Read | ₹2,000">UPI charges of 0.4% to be levied on merchant transactions above ₹2,000
In a video message on X — which he captioned, “Modi ji, roll back the UPI tax. Now”, Rahul Gandhi said Prime Minister Narendra Modi has put a tax on every single Indian person by taxing UPI and “giving huge amount of money to the United States.”
The remarks come amid a political row over the government's new UPI framework. The government has set a 0.4% MDR on merchant UPI payments above ₹2,000, with the fee capped at ₹300 for transactions of ₹75,000 and above.
The government has maintained that the charge applies to merchants and not directly to customers, while the critics of this move have argued that merchants could eventually pass the additional cost on to consumers through higher prices.
{{/usCountry}}The government has maintained that the charge applies to merchants and not directly to customers, while the critics of this move have argued that merchants could eventually pass the additional cost on to consumers through higher prices.
{{/usCountry}}Rahul accuses PM of ‘surrendering’ before United States
Rahul slammed the Prime Minister over the government's new framework allowing MDR charges on certain UPI transactions, accusing him of “surrendering” before the United States and President Donald Trump.
Also Read | 'End of day consumer pays': Ashneer Grover questions UPI merchant fee, says 'call it tax'
Drawing a comparison with former Prime Minister Indira Gandhi, Rahul said, “Indiraji was once asked whether she leaned to the left or the right. Her response was, ‘I don't go left or right, I stand straight.’”
Taking a swipe at Modi, Rahul said, “Modiji is completely different. He is neither left nor right. He has decided to lie down straight and prostrate himself in front of Donald Trump.”
Rahul also alleged that the government's UPI policy would effectively impose a burden on Indians. “He has put a tax on every single Indian person by taxing UPI and giving huge amounts of money to the United States,” he said.
The Congress leader urged PM Modi to “stop lying down in front of the United States” and asked him to “have a spine” and withdraw the UPI charge.