New Delhi, Dec 1 (PTI) Describing the Income Tax Amendment Bill as "unleashing of taxation terrorism", Congress today said it is "a big assault" on the federal economy of the country that would reduce the income of states to the extent of 50 per cent.
Congress also attacked the Prime Minister Narendra Modi and his government over demonetisation, saying the step is a "total assault" on the economy, the farmers and the common people of the country, which has also created a "panic situation".
Senior Congress leader M Veerappa Moily said the Prime Minister has created an "artificial drought" in the country as also for creating a "jobless economy".
"It is a big assault on the federal economy of this country. It is nothing but unleashing of taxation terrorism. The income Tax Amendment bill will deprive the states of their income to the extent of 50 per cent, as taxes will not go to the states and there is no threshold limit on the money received," he said.
"It is a big assault on the economy in this country. Anybody can be raided. It is nothing but unleashing the Tax Terrorism on the entire country. Anybody becomes vulnerable in this. So, this is total assault on the economy, total assault on the farmers, total assault on the day to day life of a commoner and this is a very-very panic situation and in fact this has effected everybody," the former Union Minister said.
He said former Prime Minister Manmohan Singh has already come out with a very firm statement with absolute clarity that demonetisation is a monumental mismanagement and organised loot and plunder.
"I totally subscribe to him," he said.
Moily said even the Finance Ministry feels that the GDP will be 5.5 pc as against 7.5 pc which they had expected, which is a 2 pc fall.
"In next three years GDP will fall when the country was picking up, the economy was to become vibrant, farming sector just picking up after the 2 years of consecutive draughts, a panic button is pressed by the Prime Minister of the country. In fact, this is a 'Panic Strike' on the people of the country and they are disrupted," he said.
Moily accused the BJP of "subverting" Parliament and alleged that "they have already demolished" some of the Institutions.
"They have practically demolished the RBI, 'Niti Aayog' is only Aayog and no Niti, they are now demolishing even Parliament. They are intolerant to the utmost extent,"he said.