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
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.
