Is there any discrimination in tax sharing with states
FM Nirmala Sitharaman assures that there is no discrimination in tax sharing with states.
According to FM Nirmala Sitharaman, there is no discrimination in tax sharing with states. Here are the key points supporting this statement:
- Uniform tax-sharing mechanism: The tax-sharing formula between the center and states follows a uniform mechanism, ensuring an equitable distribution of taxes collected.
- Constitutional provisions: The Constitution of India lays down the method for sharing taxes, known as the Finance Commission. This commission recommends the distribution of taxes based on various factors like population, area, fiscal capacity, and special considerations.
- Data-based decision making: The tax-sharing decisions are based on extensive data analysis, considering various economic parameters and the needs of each state.
- Transparent process: The Finance Commission's recommendations are made public, ensuring transparency and minimizing scope for discriminatory behavior.
- Consultative approach: The Finance Commission engages in detailed consultations with states to understand their specific requirements and challenges, ensuring a fair assessment of their tax-sharing needs.
Answered
a year ago