Harish wants KCR to spearhead an initiative regarding tax collection through Cess

Hyderabad: The TRS has condemned the unconstitutional practice being adopted by BJP-led Central Government in collection of taxes through Cess and demanded abolition of the practice. Moving a resolution to this effect during the TRS plenary here on Wednesday, Finance Minister T Harish Rao urged Chief Minister K Chandrashekhar Rao to spearhead an initiative taking […]

Hyderabad: The TRS has condemned the unconstitutional practice being adopted by BJP-led Central Government in collection of taxes through Cess and demanded abolition of the practice. Moving a resolution to this effect during the TRS plenary here on Wednesday, Finance Minister T Harish Rao urged Chief Minister K Chandrashekhar Rao to spearhead an initiative taking other States into confidence to demand abolition of Central Government’s practice.

The system of collecting tax through Cess was denting State Government’s share from the tax revenue. As per rules, Central Government should pay 41 per cent devolution to the State Governments. But the Centre was collecting taxes in the form Cess to evade tax devolution as per prescribed norms, the Finance Minister said. “State Governments are meted with injustice in the tax devolution as they could get only 29.6 per cent devolution due to the Centre’s Cess system in the tax collection,” Harish Rao explained and demanded abolition of this practice and insisted on tax collection through divisible pool.

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This practice was affecting the State Government’s in implementation of different welfare measures. This apart, till 2011-12, the Cess in taxes being paid by citizens was 10 per cent but after Narendra Modi Government had increased the Cess to 20 per cent. This was burdening the common people financially, the Finance Minister said. Chevella MP Ranjith Reddy supported the resolution stating that the Central Government’s “weaker States – strong Centre” approach was not acceptable.

The Centre should pay 41 per cent devolution to the State Governments and the current practice of collecting taxes through Cess should be suspended immediately, he said.

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