Qatar World Cup 2022Portugal beats Uruguay 2-0, qualifies for round of 16

Watch | Data Point: How Centre’s tax share rose during COVID, while States’ fell
Premium

A video explaining the arrangement between the Centre and States as far as taxes are concerned

September 27, 2022 04:14 pm | Updated October 03, 2022 04:54 pm IST

Of the many issues that cause tension between the Centre and the States, taxes are a big one. The taxes we pay go to both the Centre and the States.

While the Centre gets to raise more taxes, it’s the States that end up needing to spend more. To minimise this imbalance, the Centre is supposed to give a sizeable chunk of its earning to the States.

But data shows that during the pandemic, while the Centre’s share in the divisible pools of taxes increased, the States’ decreased. The Centre managed to do this by increasing the cess and surcharges — the non-sharable part of the taxes collected.

Moreover, audits by the Comptroller and Auditor General show that the amount collected through cess was not used for the intended purposes and the Centre pocketed a sizeable portion of it.

Ideation and data support: Jasmin Nihalani and Vignesh Radhakrishnan

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.