New Delhi: Senior Congress leader and Thiruvananthapuram MP, Shashi Tharoor, in a recent tweet took a swipe at BJP Government and its desperation for revenue. The former international diplomat suggested the government can make much more money if they impose GST on the purchase of MLAs instead of taxing petrol and diesel.
The swipe at the Centre comes on the back of a recent series of hikes in the prices of petrol and diesel which saw diesel prices surpassing that of petrol for the first time in the country’s history.
“Instead of taxing our petrol & diesel at 32 rupees a litre, couldn’t they make much more money imposing GST on the rising purchase price of MLAs?” Tharoor wrote in the tweet.
He also called on the government for being “Desperate for revenue” and taxing Rs. 32 a litre on petrol.
Users on the micro-blogging site gave a mixed response to the tweet and shared their views and opinions on the matter. Some blamed the poor administration of the government and blamed it for hiking the prices of the fuel, while others brought forward other works of the government.
Here's the tweet:
If the government is so desperate for revenue, instead of taxing our petrol & diesel at 32 rupees a litre, couldn’t they make much more money imposing GST on the rising purchase price of MLAs?
— Shashi Tharoor (@ShashiTharoor) July 22, 2020
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Bengaluru, Sep 11: Karnataka Chief Minister Siddaramaiah on Wednesday said he has written to the Chief Ministers of eight states regarding the "unfair" devolution of taxes by the Union government, and has invited them to a conclave in Bengaluru to collectively deliberate on the issues of "fiscal federalism".
He said he has written to the Chief Ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab.
"States with higher GSDP (Gross State Domestic Product) per capita, like Karnataka and others, are being penalised for their economic performance, receiving disproportionately lower tax allocations. This unjust approach undermines the spirit of cooperative federalism and threatens the financial autonomy of progressive states," he said in a post on 'X' with "#OurTaxOurRight" hashtag.
"I have invited them to a conclave in Bengaluru to collectively deliberate on the issues of fiscal federalism at a juncture when the Finance Commission needs to make a directional shift & create incentives for growth and better tax mobilisation," he said.
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Siddararamaiah has also posted the letter written to CMs of other states on 'X'.
"As you are aware the 16th Finance Commission has begun its deliberations. The previous Finance Commissions have laid excessive emphasis on equity at the cost of efficiency and performance. As a result, states with higher GSDP per capita and higher contribution to the gross tax revenues of the union are progressively receiving lower shares of the central fiscal transfers," he said.
Stating that during the visit of the 16th Finance Commission to the State of Karnataka, during 29-30, August 2024, he underscored the need to carefully examine the impact of high emphasis given to equity on resource devolution to well performing states, he said, "I have emphasised that the reduction in central financial transfers to well performing states is placing severe limitations on their ability to invest in physical and human infrastructure."
The taxpayers of states, which are net donors to the divisible pool, also expect a fair share of their taxes to come back to them, he said, adding that the Finance Commission therefore needs to carefully balance equity with efficiency and performance.
Pointing out that states with a strong contribution to the country's GDP and Gross Tax Revenue, help build the nation in more ways than one, Siddaramaiah said, therefore, there is an urgent need to balance equity with efficiency and performance for a stronger Union, both politically and economically.
"It is, therefore, important that states which are receiving smaller shares in horizontal devolution, compared to their contributions to the Gross Tax Revenues of the Union, need to articulate a coordinated set of proposals before the Commission," he said.
"It is my pleasure to invite you to a conclave in Bengaluru to discuss these issues further. I will send a separate invitation indicating the dates once we firm up the schedule," he added.
I have written to the Chief Ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab regarding the unfair devolution of taxes by the Union government.
— Siddaramaiah (@siddaramaiah) September 11, 2024
States with higher GSDP per capita, like Karnataka and others, are being penalized… pic.twitter.com/SLqpNwVPDA