Trinamool Congress MP Derek O’Brien said states are deprived of their share in cess collections, calling it “loot”
Cess, levied for services like health and education, now constitutes 26% of Gross Tax Revenue, up from 10% in 2011
O’Brien noted cess goes directly to the Union government and is not shared with states
States Don't Get Share in Cess, this is Equal to Loot: Derek O'Brien
In a post on X, the Rajya Sabha member said that the cess, a tax levied for promoting services like health and education, makes 26% of the Gross Tax Revenue
Derek O'Brien
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Trinamool Congress MP Derek O'Brien on Thursday said states don't get their share in cess tax collections and this is equal to "loot".
In a post on X, the Rajya Sabha member said that the cess, a tax levied for promoting services like health and education, makes 26% of the Gross Tax Revenue. He said states do not get a share in it.
"Cess = Loot. Cess goes directly to the Union Govt. Cess is not shared with States," O'Brien wrote.
"In 2011, of the total percentage of Gross Tax Revenue, 10% was cess. In 2022, that moved to a huge 26%. States are being deprived! Loot 10 percent to 26%," he said.
His remarks come a day after the GST Council approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22.
Earlier, opposition-ruled states had voiced concern about the revenue implications of the rationalisation and sought a compensation mechanism. However, in the council meeting, the states came together and decided to reduce tax rates for the common person.
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