Kerala Finance Minister, Telangana Deputy CM reflect on concerns about cess not being divisive to States
Mr. Balagopal placed his concerns about one-fifth of the revenues which comes from cess is not divisive. He also reflected on concerns about voting rights in the council not evenly balanced between the Union and State governments.
“If the feeling of equal treatment and rights of States are not protected, the feeling [of federalism and balance] will not be there,” he held.
According to Mr. Balagopal, the kind of GST regime is “not helpful to the country” for it bears a “system” problem and a “serious political question”.
Elaborating on the notion, Mr. Mallu mired amidst the larger geopolitical setting, it becomes difficult for State governments to adjust as per their own requirements. “You cannot alter anything in the middle of the year, add or subtract in terms of taxation. This creates a dependency on the Council’s decision,” he stated.
