Karnataka CM Siddaramaiah Discusses Fair Tax Distribution and GST
Bengaluru, Karnataka – Karnataka Chief Minister Siddaramaiah emphasized the need for fair distribution of tax proceeds between the Centre and States. He claimed that states, including Karnataka, are not receiving their proper share of taxes from the Centre.
Speaking at the GST Day programme, Siddaramaiah explained that before GST, Karnataka collected taxes through VAT. He noted that the 16th Finance Commission, chaired by Dr. Arvind Panagariya, has been established to address tax distribution issues.
The CM highlighted that Karnataka has lost Rs 1,87,867 crore since 2017-18 due to unfair tax distribution, despite contributing Rs 4,30,000 crore annually in tax revenue. He stressed the importance of taxation for state development and praised the Commercial Tax Department for its efforts in preventing tax leakage.
Siddaramaiah also mentioned that 60,000 crore rupees are needed for guarantee schemes to empower economically weak sections of society. He encouraged the Commercial Tax Department officials to continue their good work and presented awards to 65 officers.
Key officials, including Dr. K Govindaraju, Nazir Ahmed, LK Ateeq, C Shikha, and PC Zafar, were present at the event.
GST is a consumption-based tax equally divided between the state and central governments, ensuring proper distribution as per the Goods and Services Tax Act of 2017.
