Major parties want hike in states’ share of central taxes - The New Indian Express

Major parties want hike in states’ share of central taxes

Published: 14th September 2013 09:35 AM

Last Updated: 14th September 2013 09:35 AM

Several political parties on Friday urged 14th Finance Commission chairman YV Reddy that the state be given 50 per cent of the divisible portion of central taxes.

While the TDP, BJP, CPI and LSP wanted 50 per cent share for states, MIM and TRS wanted the commission to visit Telangana  again after the state’s imminent division.

Each party was given five minutes’ time to explain their viewpoint. Representatives of  industry, trade and local bodies too submitted their representations to the commission at Jubilee Hall here.

“We sought 50 per cent share of the divisible portion of central taxes.

The surcharges and cess being collected by the Centre should also be brought under the divisible central taxes pool,’’ TDP’s  Yanamala Ramakrishnudu said.

B Vinod Kumar of the TRS said there were 89.3 per cent SCs, STs, BCs and minorities in Telangana and the commission should visit the region after it emerges as a state.

LSP’s Jayapraksh Narayan said that when the State’s tax collection improved, the share in central taxes came down. States, which failed to collect taxes, were given much share in central revenue, he complained and suggested that one-third of the central taxes be given directly to villages.

Congress leader B Kamalakar said  distribution of national resources between the Centre and the states had to be conceived not in static terms but in dynamic terms and sought a hike in Centre’s  contribution from 75 to 90 pc to the State Disaster Response Fund.

CPI state secretary K Narayana wanted equal shar ing of central taxes and suggested that region, not state, be taken as a unit for release of funds meant for development of backward areas. 

Hyderabad mayor Mohammed Majid Hussain said the master plan for improvement of storm water drainage needed Rs 10,000 crore, sewerage improvement in surrounding areas  Rs 4,200 crore, water supply Rs 7,000 crore and traffic and transportation improvement Rs 5,000 crore a year.

Federation of AP Small Industries Association president J Nageswara Rao said lands should be allotted to industry, particularly MSMEs, at reasonably low rates. At present, the land rate in AP ranged between Rs 3 crore and Rs 4 crore per acre and was not affordable, he said.

AP Chamber of Municipal Chairmen president P Venkat Narayana Goud said there was a mismatch between the functions entrusted to urban local bodies and the resources made available to them. Consequently, there are deficiencies in the services rendered by municipalities.

He also called for  establishment of an R&D wing to develop a suitable technology for disposable of solid wastes in urban areas.

In a representation submitted by its leader DA Somayajulu to the 14th finance commission, the YSR Congress Party suggested the following criteria and weights for tax devolution:

Population of 1971 should be taken into consideration and 30 per cent weightage should be given for population, 15 per cent for area, 20 per cent for fiscal capacity, 25 per cent for plan expenditure proportion to total expenditure and social sector expenditure, 5 per cent for states contributing food grains for national food security and 5 per cent weightage for administrative reforms.

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