Southern States Demand Fair Share in Central Tax Pool

Finance ministers from Kerala, Telangana, Tamil Nadu, Karnataka, and Punjab have collectively urged for an increased share in the divisive pool of Central taxes. They argue that states performing well should be incentivized rather than penalized. The conclave also discussed the rising trend of cesses and surcharges by the Center, which reduces the allocative pool.

Finance ministers from Kerala, Telangana, Tamil Nadu, Karnataka, and Punjab have jointly called for an increase in their share of Central taxes, citing fairness and incentive for good performance.

The plea was made during a conclave organized by the Kerala government to discuss issues related to the 16th Finance Commission.

Kerala Chief Minister Pinarayi Vijayan criticized the rising trend of cesses and surcharges by the Center, which diminish the states' share in the tax pool, echoing a sentiment shared by other state ministers present at the meeting.

(With inputs from agencies.)