DMK Backs Siddaramaiah’s Proposal To Discuss “Unfair” Sharing Of Taxes

Chennai: 

The ruling Dravida Munnetra Kazhagam (DMK) in Tamil Nadu has come out in support of Karnataka Chief Minister Siddaramaiah’s proposal to convene a conclave of chief ministers to discuss the “unfair” sharing of taxes with states and fiscal federalism. 

Siddaramaiah, in a letter to several chief ministers, including those of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab, has highlighted what he called the unfair devolution of taxes by the Union government. He has argued that states with higher gross state domestic product (GSDP) per capita are being penalised for their economic performance and receiving disproportionately low tax allocations.

Echoing Mr Siddaramaiah’s concerns, DMK spokesperson SAS Hafeezullah said the party has already raised these issues and pointed out that Tamil Nadu receives only 29 paise for every rupee of tax paid to the Centre.

Mr Hafeezullah further criticised the Union government for betraying states by bypassing the Goods and Services Tax (GST) and collecting cess without sharing it with them, and failing to uphold the constitutionally mandated fiscal federalism. He also accused the Centre of allocating too little to non-BJP ruled states.