Bengaluru (Karnataka) [India], Karnataka Chief Minister Siddaramaiah on Monday emphasized on the distribution of net tax revenues to be shared between the Center and States, and allocation among States of respective shares of such income.
The Karnataka CM also claimed that states were not properly receiving their share of taxes from the Centre. Explaining that GST is an indirect tax, the CM said that before GST was introduced, the Government of Karnataka collected taxes through VAT.
"There has been an outcry that states are not getting their share of taxes from the Center properly. Currently, the 16th Finance Commission is being constituted. We are advocating that taxes be properly shared with the states that pay the highest taxes to the Centre," he said. The Government of India, in accordance with Article 280 (1) of the Constitution, has established the Sixteenth Finance Commission and appointed Dr. Arvind Panagariya, former vice-president of NITI Aayog and professor as its chairman. from Columbia University.
Specific terms of reference have been outlined, including the distribution of tax revenue between the Union and the states, principles governing grants to states and measures to bolster state funds for local bodies such as panchayats and municipalities.
He added: "We have tried to draw the attention of the central government, parliamentarians and the Prime Minister to this. Under the 15th Finance Commission, the share of tax for the state government has been reduced by 1.7 percent. cent. Development of the State is possible if more taxes are collected."In February 2024, Karnataka Chief Minister Siddaramaiah said that Karnataka had lost Rs 1,87,867 crore since 2017-18 due to stepmotherly treatment towards Karnataka. and termed this as a missed opportunity for transformative development in the state.
He explained in detail how injustice is being inflicted on Karnataka in the State's share of central taxes. Siddaramaiah said that despite Karnataka's significant contribution of Rs 4,30,000 crore in tax revenue every year, we receive approximately Rs 50,000 crore from the Union Government.
Meanwhile, the Karnataka CM also underlined the importance of taxes in functioning of state administration and said that collection of taxes will result in further development. "Taxes are necessary to administer the state. Every government collects taxes and administers the country or the state. The Constitution has empowered the central and state governments to collect taxes," Siddaramaiah said.
The Karnataka CM was speaking after inaugurating the GST Day program organized by the Commercial Tax Department at the Vidhana Soudha banquet hall.
He also presented the Chief Minister's Service Awards for the year 2024-25. "We can see from many inscriptions that a tax system existed since the time of kings, even before the popular government. The inscriptions state that the Kadambas introduced tax on sales in Karnataka," the Karnataka CM said.
The CM said Rs 60,000 crore is required for the guarantee schemes.
"If inequality is to be eliminated from society, it is necessary to empower everyone economically and socially. Only then can equality be achieved. A special program is being introduced to empower the economically weak. If the poor of all religions and castes are empowered, there must be resources," he said. Appreciating the functioning of the Commercial Tax Department, the CM said that the department tries to prevent tax leakage. The department collected Rs 1,22,821 lakh crore in taxes in the years 2022-23 and Rs 1,45,266 crore in the years 2023-24.
The Chief Minister said awards were distributed to 65 officials of the Commercial Tax Department and encouraged the remaining 6,000 officials to work towards earning them. He expressed his hope that this program would inspire others.
Present were Political Secretaries to the Chief Minister Dr K Govindaraju and Nazir Ahmed, Deputy Chief Secretary Finance Department and Chief Minister LK Ateeq, Commissioner Commercial Taxes Department C Shikha, Secretary Finance Department , PC Zafar, et al.GST is a consumption-based destination tax that is divided equally between the state and central governments.
Under the GST law, there will be an equal proportion of taxes on goods and services between the central and state governments.
Whether it is an inter-state or intra-state transaction, the share of GST between the central and state governments will be the same. There is proper distribution of shares of GST between the central and state governments as per the Goods and Services Tax Act of 2017.
This distribution will be done following the prescribed rules and regulations.
The Karnataka CM also claimed that states were not properly receiving their share of taxes from the Centre. Explaining that GST is an indirect tax, the CM said that before GST was introduced, the Government of Karnataka collected taxes through VAT.
"There has been an outcry that states are not getting their share of taxes from the Center properly. Currently, the 16th Finance Commission is being constituted. We are advocating that taxes be properly shared with the states that pay the highest taxes to the Centre," he said. The Government of India, in accordance with Article 280 (1) of the Constitution, has established the Sixteenth Finance Commission and appointed Dr. Arvind Panagariya, former vice-president of NITI Aayog and professor as its chairman. from Columbia University.
Specific terms of reference have been outlined, including the distribution of tax revenue between the Union and the states, principles governing grants to states and measures to bolster state funds for local bodies such as panchayats and municipalities.
He added: "We have tried to draw the attention of the central government, parliamentarians and the Prime Minister to this. Under the 15th Finance Commission, the share of tax for the state government has been reduced by 1.7 percent. cent. Development of the State is possible if more taxes are collected."In February 2024, Karnataka Chief Minister Siddaramaiah said that Karnataka had lost Rs 1,87,867 crore since 2017-18 due to stepmotherly treatment towards Karnataka. and termed this as a missed opportunity for transformative development in the state.
He explained in detail how injustice is being inflicted on Karnataka in the State's share of central taxes. Siddaramaiah said that despite Karnataka's significant contribution of Rs 4,30,000 crore in tax revenue every year, we receive approximately Rs 50,000 crore from the Union Government.
Meanwhile, the Karnataka CM also underlined the importance of taxes in functioning of state administration and said that collection of taxes will result in further development. "Taxes are necessary to administer the state. Every government collects taxes and administers the country or the state. The Constitution has empowered the central and state governments to collect taxes," Siddaramaiah said.
The Karnataka CM was speaking after inaugurating the GST Day program organized by the Commercial Tax Department at the Vidhana Soudha banquet hall.
He also presented the Chief Minister's Service Awards for the year 2024-25. "We can see from many inscriptions that a tax system existed since the time of kings, even before the popular government. The inscriptions state that the Kadambas introduced tax on sales in Karnataka," the Karnataka CM said.
The CM said Rs 60,000 crore is required for the guarantee schemes.
"If inequality is to be eliminated from society, it is necessary to empower everyone economically and socially. Only then can equality be achieved. A special program is being introduced to empower the economically weak. If the poor of all religions and castes are empowered, there must be resources," he said. Appreciating the functioning of the Commercial Tax Department, the CM said that the department tries to prevent tax leakage. The department collected Rs 1,22,821 lakh crore in taxes in the years 2022-23 and Rs 1,45,266 crore in the years 2023-24.
The Chief Minister said awards were distributed to 65 officials of the Commercial Tax Department and encouraged the remaining 6,000 officials to work towards earning them. He expressed his hope that this program would inspire others.
Present were Political Secretaries to the Chief Minister Dr K Govindaraju and Nazir Ahmed, Deputy Chief Secretary Finance Department and Chief Minister LK Ateeq, Commissioner Commercial Taxes Department C Shikha, Secretary Finance Department , PC Zafar, et al.GST is a consumption-based destination tax that is divided equally between the state and central governments.
Under the GST law, there will be an equal proportion of taxes on goods and services between the central and state governments.
Whether it is an inter-state or intra-state transaction, the share of GST between the central and state governments will be the same. There is proper distribution of shares of GST between the central and state governments as per the Goods and Services Tax Act of 2017.
This distribution will be done following the prescribed rules and regulations.
