The Goa government on Wednesday suggested that a partial component of the income tax can be diverted towards the state which will promote generation of central taxes in its coffers.
According to Chief Minister Manohar Parrikar, the move will give liberty to the state government from imposing professional tax, an idea which was earlier mooted but was out rightly rejected by the public.
Terms like professional tax sound derogatory, so the collection from income tax component will contribute for the revenue, he said.
“Out of 30 percent income tax collected let 28 per cent go to be Centre and two percent remain with the state,” he suggested emerging from a discussion with the Finance Commission members in a resort in Panaji.
The state government in its memorandum before the Commission members suggested that the tax allocation to Goa should increase from 0.26 to 0.48 percent.
“We had allocation of 0.48 percent during 1964-65 but subsequently it was decreased. We are now demanding that it should be raised,” Mr. Parrikar said.
Goa government has asked Centre to consider population based on density while allocating the funds.
While taking into account the area of state, areas like wildlife sanctuaries, national parks, forests and coastal regulation zone areas should be removed from the calculation.
“Half of Goa is such areas,” he said.
Mr. Parrikar also said that the parameters like mobile population, high green areas should be given 25 percent weightage.