Centre Unmoved Even as States Call for Capping Cess and Surcharge

At a time when states are demanding a higher portion of the divisible central tax pool, the Union government may keep around ₹28,000 crore with itself by raising the cess on petrol and diesel as global rates soften.

- INDIVJAL DHASMANA

At their interactions with the 16th Finance Commission, various state governments, including those run by the National Democratic Alliance (NDA), have demanded an increase in their share to 45-50 per cent of the divisible tax pool from the current 41 per cent and capping cess and surcharge or including them in the common pie.