16th Finance Commission: Karnataka to seek sharing of cess and surcharge collected by the Centre with States

Karnataka, which is readying it’s response to the 16th Finance Commission, formed recently, is set to seek sharing of cess and surcharge collected by the Centre with the States and urge the Union government to consider losses suffered by the States due to implementation of GST. Karnataka will also urge the Centre to seek the opinion of States before framing terms of reference for the commission and also in appointment of members to it.

“Karnataka will seek inclusion of cess and surcharge for the purpose of calculation for devolution of funds to the States and demand will be made that Centre should share the cess/surcharge with States. Currently, the Centre is sharing less than 5% of the total cess/surcharge collected with the States,” Revenue Minister Krishna Byre Gowda told presspersons after the State Cabinet meeting.

Read more at: The Hindu